50-Year-Old Freelancer Seeks Investment Advice for Portfolio

Ans: Hello Mirza and thanks for writing to me. You have 2 Small Cap oriented funds and 1 Index Fund.

You can consider continuing to invest in Kotal Small Cap, pause investments in DSP Nifty 50 and begin investing in Edelweiss NIFTY 100 Quality 30 Index Fund, pause investments in Nippon Small Cap Fund and begin investing in SBI Focused Equity Fund.

Ans: Hello and thanks for writing to me. The funds you have chosen are good funds but if you can shed light on your goals and risk appetite, then I may recommend other funds.

Ans: Evaluation of Current Portfolio and Recommendations for Retirement Planning

Assessment of Current Investments

Your current investment portfolio reflects a thoughtful allocation across different fund categories, including balanced advantage, small-cap, and flexi-cap funds. This diversification is essential for managing risk and optimizing returns.

Analysis of Fund Selection

Each fund in your portfolio serves a specific purpose, whether it's capital preservation, growth potential, or a blend of both. The balanced advantage fund provides dynamic asset allocation, while small-cap and mid-cap funds offer exposure to companies with high growth potential.

Evaluation of Retirement Goals

At 37 years old, planning for retirement is a prudent financial objective. With a monthly investment capacity of Rs. 20,000, you have the opportunity to build a substantial corpus over time to support your retirement lifestyle.

Assessment of Risk Tolerance and Time Horizon

Considering your age and long-term investment horizon until retirement, you can afford to have a higher allocation to equity-oriented funds. However, it's essential to assess your risk tolerance to ensure your investment strategy aligns with your comfort level.

Recommendations for Portfolio Optimization

Increase Equity Exposure: Given your long-term retirement goal, consider increasing your allocation to equity funds gradually. Equity investments have historically provided higher returns over the long term, making them crucial for building retirement wealth.

Diversification Across Market Caps: While your current portfolio includes exposure to small-cap and flexi-cap funds, consider diversifying further by adding exposure to large-cap or multi-cap funds. This diversification can enhance portfolio stability and reduce concentration risk.

Regular Review and Rebalancing: Periodically review your portfolio to ensure it remains aligned with your retirement goals and risk tolerance. Rebalancing may be necessary to maintain the desired asset allocation, especially during market fluctuations.

Professional Guidance: As a Certified Financial Planner (CFP), I recommend consulting with a qualified financial advisor to tailor your investment strategy based on your individual circumstances, goals, and risk profile. A professional advisor can provide personalized recommendations and ongoing support to help you achieve your retirement objectives.

Conclusion

In conclusion, your current investment portfolio reflects a balanced approach towards achieving your retirement goals. By increasing your equity exposure, diversifying across market caps, and regularly reviewing your portfolio, you can optimize your investment strategy for long-term wealth accumulation. Consulting with a professional advisor will further enhance your financial planning journey and increase the likelihood of achieving a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: (1) Term insurance should be 10 times your income. Reevaluate if you have enough
(2) Exit the below funds,
- Mirae Tax
- Quant Tax
- Quant Flexicap
(3) Dont buy any more traditional plan
(4) Invest all the funds only in the remaining schemes