Axis ELSS Tax Saver Fund- Growth- Rs 5000 per month fixed SIP Axis Focussed 25 fund- Regular Growth- Rs 5000 per month fixed SIP HDFC Capital Builder Value Fund- Regular Plan- Growth- Rs 1000 per month fixed SIP Kotak Small Cap Fund- Growth- Rs 1000 per month fixed SIP Mirae asset ELSS Tax Saver Fund- Regular Plan- Rs 500 per month fixed SIP Nippon India Large Cap Fund- Growth Plan- Lumpsum per month around Rs 15,000 Dear Sir, Above are my Mutual Fund investments. Apart from this I additionally invest in PPF (Rs 1,50,000) per annum and ETFs as well. I have additional Rs 20-25,000 to spare to invest in MFs. Kindly analyse my portfolio and suggest some MFs for me to invest. I have 22 years of service left and want an amount of Rs 10 crores or more at the time of my retirement. Regards- Ashish

Ans: Schemes are decent but there are too many.

XIRR of 26.5 per cent is very good. However, it is not sustainable in the long run.

Risk-free rate (10 year G-sec) + inflation and some alpha should be a reasonable expectation.

In 12 years, a monthly SIP of Rs 39,000 may create a corpus of Rs 1.5 crores @ 13 per cent interest rate.

 

Ans: Funds are good and the best part is your goal is for 15yrs which is a good sign of investing.
with 18% of overall returns with these funds your corpus at the end would be Rs. 7,42,41,062/-
with 20% of overall returns with these funds your corpus at the end would be Rs. 8,92,08,227/-
with 22% of overall returns with these funds your corpus at the end would be Rs. 10,72,60,404/-
so watch accordingly on the returns and track funds.

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Ans: Given your financial goals, your current mutual fund portfolio seems diverse and aligned with your objectives. To achieve your target corpus for your child's marriage and retirement, ensure a balanced allocation across equity, tax-saving, and diversified funds. Consider reallocating some investments from gold and sector-specific funds to a broader mix of equity funds for long-term growth potential. Regularly review your portfolio's performance and adjust your investments as needed to stay on track with your goals. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific objectives and risk tolerance.

Ans: Building Your Retirement Corpus: A Strategic Approach
Wow! You've built a solid financial foundation with a good mix of investments. Let's discuss how to strategically invest your ?3 lakh monthly SIP for a comfortable retirement in 5 years.

Current Situation:

Strong Corpus: You have a significant corpus across stocks, MFs, FDs, PPF, and PF. This provides a good base for retirement planning.

Early Retirement: Retiring at 32 with a 5-year timeframe requires careful planning to ensure your investments generate sufficient income.

Existing Investments: Your current SIPs in Quant Small, Mid, Momentum Funds, and Parag Parekh Flexi Cap are good starting points.

Investment Strategy:

Equity for Long-Term Growth: Since retirement is far off (considering your young age), a significant portion can go into equity MFs for potential long-term growth. Actively managed equity funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Debt MFs for Stability: Include debt MFs to provide stability and regular income, especially closer to retirement.

Diversification is Key: Spread your investments across different asset classes (equity, debt) and market capitalizations (Large, Mid, Small) to manage risk.

Gradual FD Transfer: Consider a planned transfer of your FD to MFs over 18-24 months. This allows you to benefit from potentially higher equity returns while managing risk through diversification.

Here's a Sample SIP Allocation (you can adjust based on risk tolerance):

?1.5 lakh: Large-cap or Multi-cap Actively Managed Equity Funds for stable growth.

?0.75 lakh: Mid-cap Actively Managed Equity Funds for potential higher growth.

?0.5 lakh: Small-cap Actively Managed Equity Funds for even higher growth potential (comes with higher risk).

?0.25 lakh: Debt Funds (short/medium/long-term) for stability and income generation.

Seeking Professional Guidance:

Personalized Plan: A Certified Financial Planner (CFP) can create a personalized SIP plan considering your risk tolerance, retirement goals, existing investments, and future income needs.
Remember:

Regular Review: Review your portfolio (at least annually) to ensure it aligns with your evolving goals and risk tolerance.

Market Fluctuations: Equity markets are volatile. Stay invested for the long term to ride out market ups and downs.

You're on the right track! A CFP can help you fine-tune your SIP strategy and ensure a smooth transition to a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in