My age 60 now where i can invest rs onevlakh plus matured f d account to get maximum return in good quick tomec

Ans: Hello Raghu and thanks for writing to me. Assuming you retire at 65 and your portfolio compounds at around 13%, you will be able to create a corpus of around Rs.1.5 Crore after investing Rs.20,000 every month.

You can consider starting monthly SIP's in:
1-Edelweiss Nifty 100 Quality 30 Index Fund-Rs.5,000
2-UTI MNC Fund-Rs.5,000
3-SBI Focused Equity Fund-Rs.5,000
4-Kotak Equity Fund-Rs.5,000

If you can step-up your SIP's by 10% or more every year, you will be able to create a larger corpus for retirement.

You should also rebalance your portfolio periodically to ensure that your investments suit your risk preferences. I recommend you seek help from a professional financial planner.

Ans: Let’s evaluate your current financial situation and create a plan to achieve your goal of Rs 5 crore by age 50.

Current Financial Overview
Mutual Funds: Rs 1 crore

Equity: Rs 60 lakh

Fixed Deposits (FD): Rs 35 lakh

Provident Fund (PF): Rs 18.5 lakh

Monthly Income: Rs 1 lakh

Investment Goal
Target Amount: Rs 5 crore

Time Horizon: 10 years

Assessing Current Portfolio
1. Mutual Funds:

You have a substantial investment in mutual funds.

Ensure a mix of equity and debt funds for balanced growth.

2. Equity Investments:

Diversify across sectors and industries.

Invest in fundamentally strong companies.

3. Fixed Deposits:

Low-risk and stable returns.

Reinvest the interest for compounding benefits.

4. Provident Fund:

Provides safe and tax-efficient returns.
Recommendations to Achieve Rs 5 Crore
1. Enhance Equity Investments:

Increase your equity exposure for higher returns.

Focus on large-cap and mid-cap stocks.

Regularly review and adjust your portfolio.

2. SIP in Mutual Funds:

Invest in actively managed funds through SIPs.

Choose funds with a strong track record and experienced managers.

Regular SIPs can help in rupee cost averaging.

3. Diversify Mutual Funds:

Include a mix of large-cap, mid-cap, and sectoral funds.

Diversification reduces risk and enhances returns.

4. Reinvest Fixed Deposit Interest:

Reinvest the interest from FDs to maximize growth.

Consider breaking FDs into smaller amounts for better liquidity.

5. Monitor and Rebalance Portfolio:

Regularly review your investment performance.

Rebalance your portfolio to align with your goals.

6. Increase Monthly Investments:

Save and invest a portion of your monthly income.

Consider increasing your SIP amounts annually.

7. Avoid Direct Funds:

Direct funds lack professional guidance.

Regular funds through MFDs offer better insights and management.

8. Avoid Index Funds:

Index funds are passive and may not meet your growth targets.

Actively managed funds aim to outperform the market.

Risk Management
1. Insurance Coverage:

Ensure adequate life and health insurance.

Protects your family and financial goals.

2. Emergency Fund:

Maintain a separate emergency fund.

Covers unexpected expenses without disrupting investments.

Tax Planning
1. Utilize Tax Benefits:

Invest in tax-saving instruments like ELSS.

Maximize benefits under Section 80C and 80D.

2. Efficient Withdrawal Strategy:

Plan withdrawals from investments to minimize tax liability.
Final Insights
To reach Rs 5 crore in 10 years, enhance equity investments, diversify mutual funds, and increase SIP amounts. Regularly review and rebalance your portfolio. Avoid direct funds and index funds. Utilize tax-saving options and maintain adequate insurance coverage.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: Current Financial Overview
You are 40 years old.

You have mutual funds worth Rs. 1 crore.

You have equity worth Rs. 60 lakhs.

You have fixed deposits worth Rs. 35 lakhs.

Your PF is Rs. 18.5 lakhs.

Your PPF is Rs. 1 lakh.

Your monthly income is Rs. 1 lakh.

You need Rs. 5 crores by age 50.

Appreciating Your Progress
You have a solid financial base.

Your investments are well-diversified.

You have shown discipline in saving and investing.

Setting the Right Strategy
Mutual Funds
Mutual funds are a great choice.

They provide diversification.

Actively managed funds can outperform.

Continue with your current investments.

Consider increasing your SIPs.

This will accelerate your growth.

Equity Investments
Equity offers high returns.

It also carries higher risk.

Review your equity portfolio.

Ensure it aligns with your goals.

Consider consulting a Certified Financial Planner.

They can help optimize your equity investments.

Fixed Deposits
Fixed deposits are safe.

But they offer lower returns.

Consider moving some funds to mutual funds.

This can give you better growth.

Provident Fund (PF)
PF is a stable investment.

It offers good returns and tax benefits.

Continue contributing to your PF.

It will help secure your retirement.

Public Provident Fund (PPF)
PPF is also a safe investment.

But your current balance is low.

Consider increasing your contributions.

PPF offers tax-free returns.

Goal-Based Investing
Identify your specific goals.

Break them into short, medium, and long-term.

Align your investments with these goals.

Regular Review and Rebalancing
Review your portfolio regularly.

Ensure it aligns with your goals.

Rebalance if necessary.

This helps maintain your investment strategy.

Tax Planning
Use tax-saving instruments.

They reduce your taxable income.

Consider ELSS funds.

They offer tax benefits and good returns.

Emergency Fund
Maintain an emergency fund.

It should cover 6 months of expenses.

Keep it in a liquid account.

Health and Life Insurance
Ensure you have adequate health insurance.

Cover at least Rs. 10 lakhs.

Consider term life insurance.

Cover at least 10 times your annual income.

This means Rs. 1.2 crores.

Consulting a Certified Financial Planner
Consult a Certified Financial Planner.

They provide expert advice.

They help in making informed decisions.

They ensure your investments are on track.

Final Insights
You have a strong financial foundation.

Focus on increasing your investments.

Review and rebalance your portfolio regularly.

Ensure adequate insurance coverage.

Seek advice from a Certified Financial Planner.

This will help you achieve your Rs. 5 crore goal by age 50.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in