7:54 PM Good evening Sir. I want to create a corpus of Rs 2 crore for my family in next 10 years. Could you please suggest some good mutual funds that will help me realise my dreams? Thank you.

Ans: You may consider below funds, Rs. 2500 in each:

• Parag Parikh Flexi Cap Fund- Growth
• Samco Flexi Cap Fund – Growth
• UTI MNC Fund - Growth Plan
• HDFC Index Fund - Sensex Plan  - Growth

Ans: Continue with 2 , 3, 4, 5, 9 & 10

Ans: With a monthly savings of 50,000 INR, you have a substantial amount to invest in mutual funds for both your retirement and your children's education. Here's a diversified portfolio you could consider:

Large Cap Funds: Invest around 30% of your savings in large-cap funds for stability and steady growth. These funds invest in established companies with a track record of performance.

Multi-Cap Funds: Allocate 30% of your savings to multi-cap funds, which offer exposure to companies of various sizes and sectors. These funds provide flexibility and potential for higher returns.

Mid Cap Funds: Dedicate 20% of your savings to mid-cap funds for potential high growth. These funds invest in medium-sized companies with growth potential.

Small Cap Funds: Allocate 10% of your savings to small-cap funds for aggressive growth potential. These funds invest in small-sized companies with high growth prospects.

Balanced/Hybrid Funds: Invest the remaining 10% in balanced or hybrid funds for diversification and stability. These funds invest in a mix of equities and debt instruments.

Remember to review your portfolio regularly and make adjustments as needed based on your financial goals and market conditions. Additionally, consider consulting with a financial advisor to tailor a strategy that aligns with your specific needs and risk tolerance.

Ans: I will not be able to suggest any fund or investment avenue as the provided information is not sufficient to ascertain the holistic financial view.

For a better future financial planning, there are various factors which are required to be considered such as Risk appetite, current financial situation, upcoming requirements and goals etc. It is advisable to consult a good financial advisor to tailor a strategy specific to your circumstances.

Ans: Assessing Your Investment Plan

Lumpsum Investment: You plan to invest Rs 3 lakhs as a lumpsum.

Monthly SIP: You also want to invest Rs 10,000 monthly.

This combination of a lumpsum and SIP is a good strategy.

Expected Returns

Equity Funds: Typically, equity funds can give an average return of 12-15% annually.

Diversification: To reduce risk, diversify into different types of funds.

Advantages of Actively Managed Funds

Professional Management: Managed by experienced professionals.

Better Adaptability: Adjust investments based on market conditions.

Higher Returns Potential: Skilled managers aim to outperform the market.

Disadvantages of Index Funds

Limited Flexibility: Can't adapt quickly to market changes.

Market Fluctuations: More exposed to volatility.

Potential Lower Returns: May underperform actively managed funds.

Why Regular Funds Over Direct Funds

Expert Advice: Certified Financial Planners (CFPs) provide tailored advice.

Holistic Planning: Consider your overall financial situation.

Ongoing Support: Regular adjustments to your investment strategy.

Better Resources: Access to extensive research and tools.

Calculating the Corpus

Let's assess if your plan can reach your goal. With Rs 3 lakhs lumpsum and Rs 10,000 monthly SIP, you can potentially reach Rs 1 crore in 10 years.

Investment Strategy

Start with Lumpsum: Invest Rs 3 lakhs in a diversified equity fund.

Monthly SIP: Invest Rs 10,000 in a mix of equity and hybrid funds.

Review Regularly: Monitor your investments and adjust as needed.

Stay Invested: Long-term investments tend to yield better returns.

Important Considerations

Risk Tolerance: Equity investments carry risk. Be prepared for market fluctuations.

Time Horizon: Staying invested for the full 10 years is crucial.

Professional Advice: Consult a Certified Financial Planner for personalized guidance.

Final Insights

Ayan, your plan to invest Rs 3 lakhs as a lumpsum and Rs 10,000 monthly SIP is a strong start. With disciplined investing and proper fund selection, you can potentially reach your Rs 1 crore goal in 10 years. Diversify your investments, stay invested for the long term, and consult a Certified Financial Planner for tailored advice.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in