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Ramalingam Kalirajan |8086 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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 Suprabhat on Nov 21, 2023Hindi

Dear Sir , I am 52 years old . Mainly investing through Mutual funds since 2016 ( though it was bit late ) targeting to build up a corpus of at least 1.2 crore at the age of 62 which is my retirement age . I am a self employed professional . I used to invest 40000/- per month since 2016 but due to financial obstacles recently had to stop all the SIP . Now , at present my total MF corpus 42 L against an investment value 31 lakhs , weighted average days 850 days . I am not sure if I am able to restart the SIPs in near future . So , I want to grow the present corpus to that level in next 10 years . Presently , my portfolio is over-diversified comprising 44 funds from 10 fund houses . Out of it 98 % in equity & 2% liquid . My present portfolio average XIRR is 13.88 % . I do seek an advice from you that how should I relocate / reconstruct my port folios in order to build up the above corpus which demand a 300 % growth in next years . I wanted to attach my portfolio detailed report but couldn't find scope to attach the same in this post .with thanks & best regards ; Suprabhat jatty

Ans: Suprabhat, it's great to see your commitment to building a substantial corpus for your retirement despite facing financial obstacles. Considering your situation, here are some suggestions to optimize your portfolio and work towards your goal:

Consolidate and Simplify: With 44 funds in your portfolio, it may be challenging to manage effectively. Consider consolidating your holdings into fewer funds to streamline your portfolio and reduce overlap.
Focus on Quality: Prioritize quality over quantity when selecting funds. Choose well-managed funds with a consistent track record of outperformance and a strong investment philosophy aligned with your goals.
Review and Rebalance: Regularly review your portfolio's performance and rebalance as needed to maintain your desired asset allocation and risk level. Focus on high-conviction funds and consider exiting underperforming ones.
Reallocate Towards Growth: Since you're aiming for a significant growth in your corpus, consider reallocating a larger portion of your portfolio towards growth-oriented assets like mid-cap and small-cap funds, which have the potential to deliver higher returns over the long term.
Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized guidance based on your financial situation and goals. They can help you develop a customized investment strategy and monitor your progress towards achieving your retirement target.
Remember, building wealth requires discipline, patience, and a well-thought-out investment approach. Stay focused on your long-term objectives and be prepared to make adjustments along the way as your financial circumstances evolve. Best of luck on your journey towards achieving your retirement goal!

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