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Ramalingam Kalirajan |8098 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Sunny on Apr 19, 2024Hindi

I am 40 year old, I have started doing SIP , some are one-time and some are per month SIP, Here is the list:- A---One time SIPs 1.Quant Small Cap Fund Direct Plan- One time invested One lakh and have kept it for 5 years. 2.Nippon India Multi Cap Fund Direct Growth-One time invested One lakh and have kept it for 5 years. 3.ICICI Prudential Small Cap Fund Direct Plan Growth-One time invested One lakh and have kept it for 5 years. 4.Kotak Nifty AAA Bond Jun 2026 HTM Index Fund Direct Growth B--Monthly SIPs 1.HDFC Mutual fund - 10,000 per month 2.Quant Small Cap Fund Direct Plan- 15,000 per month 3.SBI PSU Direct Plan Growth-10,000 per month. My aim is to make 50 Lakhs in 5 Years, am i actually contributing in the right fund or do I need to change, I have taken high risk. Thank you Sunny Sinha

Ans: It's great that you're investing systematically through SIPs to achieve your financial goals. However, it's essential to review your investment strategy periodically to ensure it aligns with your objectives and risk tolerance.

Considering your aim to accumulate 50 lakhs in 5 years and your willingness to take high risk, here are some considerations:

One-time SIPs: Investing in small-cap and multi-cap funds can potentially offer higher returns but also comes with higher volatility. Given your relatively short investment horizon of 5 years, ensure you're comfortable with the risk associated with these funds.
Monthly SIPs: Continuing SIPs in small-cap and PSU funds aligns with your risk appetite. However, it's crucial to monitor the performance of these funds regularly and be prepared for market fluctuations.
Review and Adjust: Periodically review the performance of your funds and assess if they're on track to meet your goal of accumulating 50 lakhs in 5 years. If necessary, consider rebalancing your portfolio or switching to funds with better growth potential and risk-adjusted returns.
Diversification: While high-risk investments have the potential for higher returns, it's essential to diversify your portfolio to mitigate risk. Consider adding funds from different categories such as large-cap or balanced funds to achieve diversification.
Consult a Financial Advisor: Given the complexity of investing and your specific financial goals, consider consulting with a financial advisor who can provide personalized advice tailored to your needs and objectives. They can help you evaluate your investment strategy, identify any gaps or areas for improvement, and make informed decisions to maximize your returns while managing risk.
By staying informed, regularly reviewing your portfolio, and seeking professional guidance when needed, you can increase the likelihood of achieving your financial goals effectively.

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