Hi.I am 43 yrs old Married and have a 8yrs child .Need a corpus of 3-4 crs at the time of retirement maybe 55yrs . Having Home loan which is going 34k/ monthly and household expense. Below is the monthly SIP Aditya Birla -Growth -2000/-, Axis Bluechip -Growth -2500/-Axis flexi -Growth-2500/- AxisSmall Cap -Growth-2500/-HDFC Top 100-Growth -3000/- Nippon Multi Cap -Growth 4500/- Sbi Small Fund 2500/- Can it help me in achieving my goal or do have realter my Sip to achieve my target.

Ans: Monthly SIP of Rs. 40000 is adequate to build a corpus of Rs. 1 crs in 10 years.

Please continue with existing Tata, Mirae, Axis and can consider UTI Equity Fund -  Growth, Axis Bluechip Fund – Growth and DSP Mid Cap Fund – Growth

Ans: Your choice of SIP is all very good. Keep investing and you will be surprised after 25 years to see the corpus

Ans: Dear Raj,

It's commendable to see your proactive approach towards retirement planning. With a monthly income of 3.0 lacs and systematic investment plans (SIPs) since 2018, you've laid a foundation for your retirement corpus.

Let's review your current portfolio and provide some insights:

Equity Funds (SIPs since 2018):

Aditya Birla Sun Life Frontline Equity, HDFC Mid-Cap Opportunities, ICICI Pru Value Discovery, UTI Transportation & Logistics: These funds offer a diversified exposure across large-cap, mid-cap, and sector-specific themes. Ensure the funds align with your risk tolerance and investment horizon. Periodically review their performance and adjust if necessary.
New SIPs from 2023:

SBI Contra and Canara Robeco Small Cap Fund: SBI Contra focuses on undervalued stocks, and Canara Robeco Small Cap Fund aims for growth in small-cap companies. Given your existing SIPs, these funds could add a layer of diversification. However, small-cap funds tend to be more volatile; ensure they align with your risk appetite.
Fixed Deposits (FD):
Your FDs amounting to 50 lacs offer stability to your portfolio. While FDs provide security, the returns might not beat inflation over the long term. Consider gradually shifting a portion to equity mutual funds to potentially enhance returns, given your risk appetite.

Retirement Corpus:
To achieve a retirement corpus of 2 crore, ensure your investments are aligned with your retirement goals. Consider increasing SIP amounts periodically, taking advantage of compounding. Also, consider adding debt or balanced funds to reduce overall portfolio volatility as retirement approaches.

Suggestions:

Review & Rebalance: Periodically review your portfolio's performance and asset allocation. Rebalance if necessary to align with your retirement goals.
Diversification: Explore adding international funds or sector-specific funds to diversify further.
Tax Efficiency: Consider ELSS funds for tax-saving while aligning with retirement goals.
Given the complexities of retirement planning, consulting with a Certified Financial Planner can offer personalized guidance tailored to your retirement aspirations.

Your dedication to retirement planning is commendable, and with strategic planning, you're on the right path towards achieving your retirement goals.

Ans: To achieve a corpus of 1 crore at the age of 60, you'll need to start investing in SIPs diligently. Here's a breakdown to help you plan:

Current Monthly Expenses:
LIC: ?15,700 (for 3 years)
Reliance Nippon: ?36,800 (for 4 years)
Home Loan EMI: ?21,667 (for 4 years)
Rent: ?9,500
Other Expenses: ?15,000 to ?20,000
Total Expenses: ?98,667 to ?103,667
Monthly Income:
Salary: ?61,000
Rent from Flat: ?8,300
Total Income: ?69,300
Monthly Surplus:
Monthly Income - Monthly Expenses = ?69,300 - ?98,667 to ?103,667
Monthly Surplus (Deficit): -?29,367 to -?34,367
Investment in SIP:
Since you have a deficit in your monthly surplus, you'll need to adjust your expenses or increase your income to accommodate SIP investments.
Aim to allocate a portion of your surplus towards SIP investments. The amount will depend on your ability to cut expenses or increase income.
To calculate the required SIP amount, you can use online SIP calculators considering factors like expected rate of return, investment horizon, and inflation rate.
Start with a manageable SIP amount and gradually increase it as your income grows or expenses reduce.
Peaceful Life:
Review your expenses regularly and prioritize savings and investments to achieve your financial goals.
Focus on creating an emergency fund to cover unforeseen expenses and protect your financial stability.
Consider consulting with a financial advisor to create a comprehensive financial plan tailored to your specific needs and goals.
Stay disciplined in your financial habits, avoid unnecessary debt, and invest in assets that align with your risk tolerance and investment horizon.

By carefully managing your expenses, increasing your income, and prioritizing savings and investments, you can work towards building a corpus of 1 crore by the age of 60 while leading a peaceful and financially secure life.

Ans: It's commendable that you're actively investing towards your retirement at such a young age. Let's assess your current investment strategy and whether it's sufficient to build a corpus of 5-6 crores over 25 years.

Analysis of Current Investments
SIPs in Mutual Funds
Diversification: Your SIPs across various categories such as small-cap, mid-cap, and flexi-cap funds demonstrate a diversified approach to equity investments.
Consistency: Consistently investing in SIPs over the long term can potentially generate significant wealth through the power of compounding.
Other Investments
RDs: Investing in recurring deposits provides a secure avenue for accumulating savings over time, although the returns may be modest compared to equity investments.
Chit Funds: Chit funds offer a traditional savings mechanism, but ensure that they align with your risk tolerance and financial goals.
Sukanya Samriddhi Yojana: This scheme is ideal for long-term savings for your daughter's education or marriage, offering attractive interest rates and tax benefits.
NPS Tier-1: Contributing to NPS enhances your retirement savings, providing tax benefits and the potential for long-term growth.
Assessing Retirement Corpus Target
Retirement Goals
Corpus Requirement: To achieve a retirement corpus of 5-6 crores over 25 years, you need to estimate your future expenses, accounting for inflation and lifestyle expectations.
Investment Growth: Evaluate the expected growth rate of your investments, considering historical performance and market conditions.
Strategies for Building Retirement Corpus
Increase Investment Contributions
SIP Amount: Consider gradually increasing your SIP contributions annually to accelerate wealth accumulation and keep pace with inflation.
Additional Investments: Allocate any surplus income towards additional investments in mutual funds or other suitable avenues to boost your retirement corpus.
Optimize Investment Portfolio
Review and Rebalance: Periodically review your mutual fund portfolio and make necessary adjustments to ensure alignment with your financial goals and risk tolerance.
Asset Allocation: Maintain a balanced asset allocation strategy, diversifying across equity, debt, and other asset classes to manage risk effectively.
Retirement Planning Tools
Retirement Calculators: Utilize online retirement calculators to estimate your future financial needs and determine if your current savings and investments are on track to meet your retirement goals.
Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized advice tailored to your specific financial situation and retirement objectives.
Conclusion
While your current investment strategy demonstrates a proactive approach towards retirement planning, achieving a corpus of 5-6 crores over 25 years requires consistent savings, disciplined investing, and periodic review of your financial plan. By optimizing your investment contributions, diversifying your portfolio, and utilizing retirement planning tools, you can work towards securing a comfortable retirement lifestyle.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in