My Current Portfolio is as follows. Please advice on hold or exit.

Ans: Achieving a minimum return of 12% per annum requires a strategic and diversified approach to investing. Here are some reasonable and safe investment options to consider:

Equity Mutual Funds: Investing in well-managed equity mutual funds with a track record of consistent performance can potentially offer returns higher than 12% over the long term. Opt for funds with a diversified portfolio across sectors and market capitalizations to mitigate risk.

Index Funds: While you mentioned not recommending index funds, they can still be considered for their lower fees and broad market exposure. However, actively managed funds may offer the potential for higher returns, albeit with slightly higher fees.

Diversified Portfolio: Building a diversified portfolio that includes a mix of equities, debt instruments, and alternative investments can help spread risk and optimize returns. Consider allocating a portion of your portfolio to asset classes like bonds, gold, and real estate investment trusts (REITs) to enhance diversification.

Systematic Investment Plans (SIPs): Investing regularly through SIPs in mutual funds allows you to benefit from rupee cost averaging and can potentially generate attractive returns over the long term, even during market fluctuations.

Public Provident Fund (PPF): PPF offers a tax-efficient investment option with relatively stable returns and a long-term investment horizon. While the returns may vary, historically, PPF has offered returns higher than 12% in some periods.

National Pension System (NPS): NPS is a retirement-focused investment vehicle that offers the potential for attractive returns through exposure to equities, corporate bonds, and government securities. Opting for the Active Choice option allows you to customize your asset allocation based on your risk tolerance and return expectations.

Real Estate Investment Trusts (REITs): Investing in REITs provides exposure to the real estate sector without the hassle of property management. REITs typically offer attractive dividend yields and the potential for capital appreciation over time.

Direct Equity: While direct equity investing carries higher risk, carefully selecting fundamentally strong companies with growth potential can potentially yield returns higher than 12% over the long term. Conduct thorough research or seek guidance from a Certified Financial Planner before investing in individual stocks.

Remember, achieving a minimum return of 12% per annum requires patience, discipline, and a long-term investment horizon. It's essential to align your investment strategy with your risk tolerance, financial goals, and time horizon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in