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: 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.

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Ans: Currently, your portfolio is overly diversified in a similar category funds (ELSS), although the funds are well performing and have delivered decent returns till date. The ongoing SIPs in these funds will help you in accomplishing your goals along with tax savings but we recommend you to reduce the funds to two. The other funds in your portfolio are also fundamentally strong and decent performers. Hence, we recommend you to not introduce new funds in your portfolio and allocate the additional SIPs amount in the existing funds.

For your post retirements commitments, NPS is a good investment asset class as it will maintain your cashflows. You also have a decent health insurance for medical uncertainties but I recommend you to increase the term plan to 1 Cr.

Ans: Understanding Your Goals

You have two primary financial goals. First, Rs 50 lakhs for your child's marriage in the next 10 years. Second, Rs 1 crore for retirement along with a monthly pension of Rs 50,000 post-retirement.

Both these goals require careful planning and disciplined investing.

Assessing Your Current Portfolio

Your current investments are diversified across various equity mutual funds. This diversification is a good strategy for risk management.

You invest Rs 2000 per month in each fund. This consistent investment is a commendable approach.

Equity Mutual Funds

Equity mutual funds are great for long-term wealth creation. They have the potential for high returns, which is essential for meeting your financial goals.

However, actively managed funds can outperform index funds in certain market conditions. This is due to professional fund management, which can adapt to market changes.

Tax-Saving Funds

You have invested in tax-saving funds, which is beneficial for tax deductions under Section 80C. These funds also invest in equities and can offer good returns.

However, consider the lock-in period of three years. Ensure these investments align with your liquidity needs.

Sectoral Funds

Your portfolio includes sectoral funds, which focus on specific sectors like technology. These funds can deliver high returns but come with higher risks.

Diversify across sectors to manage risk effectively. Avoid over-concentration in any one sector.

Gold Funds

You have invested in gold funds, which add stability to your portfolio. Gold acts as a hedge against inflation and economic uncertainties.

However, gold should be a smaller portion of your portfolio as it does not provide regular income.

International Funds

International funds give exposure to global markets, which can offer diversification benefits. These funds can help mitigate risks related to domestic market downturns.

However, be mindful of currency risk and geopolitical factors that can impact returns.

Direct vs. Regular Funds

You have chosen some direct funds. Direct funds have lower expense ratios, leading to slightly higher returns.

However, regular funds offer the benefit of advice from a Certified Financial Planner (CFP). This guidance can be crucial for making informed decisions.

Rebalancing and Monitoring

Regularly review and rebalance your portfolio to stay aligned with your goals. Market conditions and personal financial situations change, requiring adjustments in your investments.

Consider consulting a CFP for professional advice on rebalancing.

Conclusion

Your current investments reflect a thoughtful approach towards achieving your financial goals. Continue with disciplined investing and regular reviews.

Ensure diversification across different types of funds to balance risk and returns. Seek professional advice when needed to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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.