Hi Sir, In 5 year I need 30 lakhs corpus, for the same I am investing 30000 per month as follows: 5000 in Nippon large Cap direct growth, 5000 in Nippon India small cap; 5000 in Parag parikh Flexi cap; 5000 in HDFC Transportation and logistics fund; 5000 in Amazon, 1000: Google; 5000 Vanguard S&P 500. Do I have right selections or need to rectify/add/change values or Funds? Also I am using INDMoney for same, any comment on the same?

Ans: Hello Poorvi. Your portfolio consists of both tax-saving and non-tax saving funds. It is recommended that you can increase your monthly sips from 35k to approximately 1.8 lakh, if you wish to achieve 5 Cr corpus.

There is a large allocation to small cap & it seems you are taking aggressive risks. I would suggest introducing new categories, such as flexi-cap and midcap.

If 1.8 Lakh sips are not possible try to have semi annually or annual add on to current sips. I hope this solves your concern.

Ans: Hi Good to see you are investing for a long time now but too many cooks spoil the party, same way you can exit Birla Frontline hdfc top 100 SBI bluechip funds and same for HSBC and dsp funds and and can add parag parikh flexi cap to your portfolio

Disclaimer me and my funds can have holdings in the suggested portfolio

Ans: Hello Value Investor. I can see over diversification with your current sip investments with 2.25L sip amount. I would suggest to concise your mf investments and reshuffle the portfolio. To achieve corpus of 5 cr in next 5 years, its advisable to increase your monthly contribution to 4-4.5L.

Ans: It's impressive to see your proactive approach towards building wealth and securing your financial future. With a well-diversified portfolio and a systematic investment plan in place, you're on the right track to achieve your goal of reaching a corpus of 5 crore by the age of 40.

Your current investment mix demonstrates a balanced approach, encompassing various asset classes like mutual funds, fixed deposits, PPF, gold, and stocks, both domestic and international. Diversification is key to managing risk and maximizing returns over the long term.

Continuing with your SIPs, PPF contributions, and sovereign gold investments will further strengthen your portfolio's foundation. SIPs in equity mutual funds provide exposure to the equity market, offering the potential for higher returns over time. PPF and sovereign gold investments offer stability and act as a hedge against market volatility.

Your strategy of investing in Nifty 50 ETF during market downturns is commendable as it allows you to capitalize on market opportunities and accumulate units at lower prices, potentially enhancing your long-term returns.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.

Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.

Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.



Regularly review your portfolio's performance and rebalance as needed to ensure alignment with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner (CFP) to fine-tune your investment strategy and address any specific concerns or objectives you may have.

Stay disciplined with your savings and investment approach, and continue to monitor market trends and economic indicators. With patience, perseverance, and prudent financial management, you're well-positioned to achieve your target corpus by the age of 40.

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

Ans: To achieve a corpus of Rs 4 crore in 18 years, you'll need to assess whether your current SIPs and fund selection are adequate.

Current Investments:
Your total monthly SIP is Rs 68,000. Over 18 years, assuming an average return of 12 per cent per annum (which is reasonable for a well-diversified equity portfolio), here's a rough estimate:

Future Value of SIPs:

Using the SIP formula, the corpus generated by Rs 68,000 monthly SIPs over 18 years at a 12 per cent annual return would be approximately Rs 3.8 to 4 crore.

Analysis:

Fund Selection:

• Equity Funds: Most of your funds are equity-oriented, which is good for long-term growth.
• Sectoral Funds: You have multiple sectoral/thematic funds (like technology, energy, digital, etc.). These can be volatile, and while they offer higher growth potential, they also carry higher risk. It's essential to ensure you're comfortable with this level of risk.
• Debt Fund: HDFC Hybrid Debt Fund and Nifty G-Sec Index Fund add a bit of stability to your portfolio, but they're relatively conservative compared to pure equity funds.

Diversification:

Your portfolio is well-diversified across sectors and asset classes. However, it's important to periodically review and rebalance your portfolio to align with market conditions and your risk tolerance.

Additional Investments:

If you want to be more certain of achieving or even exceeding the Rs 4 crore target, you could consider increasing your SIPs gradually as your income increases.

Another approach is to invest any bonuses or lump sums you receive into these funds or consider adding new funds to further diversify.

Conclusion:

You're on track to achieve your target based on current contributions. However, it's always good to review your portfolio annually, consider increasing SIPs as your financial situation improves, and consult with a financial advisor to ensure your investments are aligned with your goals and risk tolerance.