From April 2024 I ve started a SIP of 4 lacs each in ICIC pru index, 4.5 L in Parag Parikh Flexicap & 1.5 L Nippon India small cap( all 3 growth plans) . My age is 46 & I want to build a solid corpus of over 25 crore over the next 9-10 yrs until I retire. Do u suggest any changes or addition in the number of funds.

Ans: Your commitment to SIPs reflects a proactive approach towards building wealth for your retirement, and your choice of funds demonstrates a well-diversified portfolio. Let's evaluate your current strategy and suggest potential adjustments to align with your ambitious goal of accumulating over 25 crores in the next 9-10 years.

Assessing Current Portfolio Allocation
Your current SIP allocation comprises investments in ICICI Pru Index, Parag Parikh Flexicap, and Nippon India Small Cap funds, each with varying risk profiles and growth potential. While index funds offer stability, flexicap funds provide diversification, and small-cap funds aim for higher growth.

Considering Risk and Return Profile
Given your age of 46 and the relatively short investment horizon until retirement, it's crucial to strike a balance between risk and return. As you approach retirement, preserving capital becomes paramount, necessitating a gradual shift towards more conservative investments.

Potential Adjustments and Additions
Diversification: Consider diversifying further by adding exposure to other asset classes like debt or balanced funds to mitigate overall portfolio risk. Debt funds provide stability, while balanced funds offer a mix of equity and debt, suitable for investors nearing retirement.

Focus on Consistency: Evaluate the historical performance and consistency of the funds in your portfolio. Ensure that they align with your long-term financial goals and risk tolerance.

Review Fund Selection: While your current funds have their merits, periodically review their performance and make adjustments if necessary. Funds experiencing consistent underperformance or significant changes in fund management may warrant reconsideration.

Professional Guidance: Engage with a Certified Financial Planner (CFP) to conduct a comprehensive review of your portfolio and provide personalized recommendations tailored to your financial objectives and risk appetite.

Conclusion
In pursuit of your ambitious goal of accumulating over 25 crores by retirement, it's essential to periodically review and adjust your investment strategy. By diversifying appropriately, focusing on consistency, and seeking professional guidance, you can optimize your SIP portfolio for long-term wealth creation and financial security in retirement.

Best Regards,

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