I am 40 years old. I want to invest for another 20 years with an corpus target of 3 crore. I am investing from last 2 years.

My present investments are:

Parag Parikh Flexi cap fund - Rs 10000

Axis Blue Chip Fund - Rs 5000

Axis Mid cap fund - Rs 2500

Axis Small cap fund - Rs 2500

Mirae Asset Emerging Blue Chip - Rs 2500

NPS - Rs 5000

VPF - Rs 6000

RD - Rs 7000

Please help me with more funds and amount how much to be invested. 

Ans: Please continue with 1, 3, 6, 7, 8 and 9.

Yes, you may invest in Kotak Small Cap Fund -- Growth

You may consider a couple of schemes from below for further investments

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Ans: You have a SIP of Rs 13,500 right now and a total corpus of 11.5 Lakhs. By increasing your SIP by another 10,000, your total SIP will be Rs 23,500. Even if we assume a low portfolio growth of 10% per annum, you should be able to get at least 2.64 Crores.

And if you do regular reviews of your portfolio, you should be easily able to do better than this.

However, I have no idea about your future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down. Hence, it is not possible for me to suggest you the funds to invest in or review your portfolio. Please consult your financial advisor for an in-depth analysis and suggestions.

Ans: Assessment and Recommendation for Achieving a Corpus of Rs. 2 Crores in 20 Years:

Current Investment Portfolio Review:

Your existing portfolio demonstrates a proactive approach towards wealth accumulation, reflecting a mix of equity, hybrid, and debt funds.
Investments in tax-saving funds like DSP Tax Saver Fund and diversified equity funds like ICICI Prudential Flexi Cap Fund exhibit a focus on long-term growth potential.
However, it's essential to assess the adequacy of your current investments and determine additional contributions required to achieve your target corpus of Rs. 2 Crores in 20 years.
Analysis of Additional Investments Required:

Given your current investment value of Rs. 11.50 Lacs and an investment horizon of 20 years, you need to calculate the required monthly SIP amount to achieve your target corpus.
Considering an assumed annualized return rate based on historical performance of mutual funds, you can estimate the monthly SIP required to reach your goal.
It's crucial to consider factors such as inflation, investment expenses, and market volatility while determining the additional investments needed to achieve your financial objective.
Recommendations for Asset Allocation and Fund Selection:

Given your age and investment horizon, maintaining a predominantly equity-oriented portfolio with a long-term perspective is advisable to maximize growth potential.
Allocate a higher proportion of your investments to equity funds, preferably diversified across market capitalizations and sectors, to capitalize on growth opportunities.
Consider adding exposure to mid-cap and small-cap funds for potential higher returns, but be mindful of the associated volatility.
Incorporate debt funds to provide stability to your portfolio and mitigate risk, especially as you approach your financial goal.
Financial Planning and Goal Setting:

Utilize online SIP calculators or consult with a Certified Financial Planner to determine the exact monthly SIP amount required to achieve your target corpus of Rs. 2 Crores in 20 years.
Review your investment strategy periodically and make necessary adjustments based on changing market conditions, financial goals, and risk tolerance.
Stay disciplined with your investment approach and avoid making impulsive decisions, keeping your long-term financial objectives in mind.
In conclusion, by systematically increasing your monthly SIP contributions and maintaining a well-diversified portfolio aligned with your risk profile and investment horizon, you can work towards achieving your target corpus of Rs. 2 Crores in 20 years.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Your journey of investing, starting with a modest amount and gradually increasing over the years, is commendable and reflects discipline and commitment. Your current portfolio, consisting of mid-cap, large-cap, and gold savings funds, provides a blend of growth-oriented and defensive assets.

To achieve a corpus of Rs 1 Crore in the next 20 years, it's essential to maintain a balanced approach between growth and stability. While your current funds have their merits, consider diversifying further to potentially enhance returns while managing risk.

Regular reviews with a Certified Financial Planner can help assess your portfolio's alignment with your long-term goals and market conditions. With disciplined investing and periodic reviews, you can navigate the investment landscape with confidence, aiming to reach your financial milestone.

Remember, investing is a journey of patience, resilience, and continuous learning. Embrace this journey with confidence and commitment, and may your investments flourish over the years, paving the way towards achieving your financial aspirations.

Ans: Let's create a comprehensive plan to achieve your goal of a Rs 5 crore corpus by the age of 50.

Current Financial Position
Your current investments are impressive. You have:

Rs 25 lakhs in mutual funds

Rs 1.5 lakhs in shares

Rs 4.5 lakhs in FDs

Rs 10 lakhs in PF

Rs 6 lakhs in PPF

You are also investing monthly:

Rs 50k in SIPs

Rs 5k in stocks

Rs 5k in RDs

Rs 2.5k in NPS

Your home loan of Rs 34k p.m. will be closed in 1 year.

Estimating Additional Investment Needed
To achieve a corpus of Rs 5 crores in 14 years, let's assess your current savings and future investments.

Assuming an annual return of 12% from mutual funds, you need to invest more to reach your goal.

Optimising Current Investments
Mutual Funds:

Actively managed funds can provide higher returns compared to index funds. Fund managers actively pick stocks to beat the market.

Stocks:

Continue your Rs 5k p.m. investment. Stocks can give good returns over time but come with higher risk.

Recurring Deposits (RDs):

Rethink your RD investments. They offer lower returns compared to mutual funds and stocks. You could redirect this Rs 5k p.m. to mutual funds.

National Pension System (NPS):

NPS is a good long-term investment for retirement. It provides tax benefits and a mix of equity and debt exposure.

Home Loan Repayment Impact
In one year, your home loan will be closed. This frees up Rs 34k p.m. Redirect this amount to mutual funds and stocks. This boosts your investment significantly.

Additional Monthly Investment
With the freed-up Rs 34k p.m., you can increase your SIPs. Invest this additional amount in mutual funds for higher returns.

Emergency Fund and Insurance
Ensure you have an emergency fund covering 6 months of expenses. Check your health and life insurance coverage. Adequate insurance protects your savings.

Regular Review
Review your portfolio annually. Adjust based on performance and goals.

Final Insights
You have a strong financial foundation. By optimising investments and increasing your SIPs, you can achieve your Rs 5 crore goal.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in