Hi .. I am 42 years old.. Have accumulated around 1.3 Crores as of today in MF(51.5 L), PPF/SSY (36 L) and EPF(46 L). Target is to reach around 10 crores in the next 13-15 years. I am a High Risk investor. I am investing in the below mutual funds for a minimum tenure of another 13 years.. UTI Nifty 50 Index (12k), Mirae Asset Large and Midcap (3k), UTI Nifty 200 Momentum 30 (12k), Quant Midcap (35k), Invesco India Midcap (35k) , Quant Small cap (12k), Axis Small Cap (12k), Parag Parikh Flexicap (20k) and Quant Flexicap (20k). Apart from this will continue investing in PPF (1.5 L yearly), Sukanya Samriddhi Yojana (1.5 L yearly) and EPF (3.4 L yearly). Am I aligned to reach the goal with the funds selected or any changes needs to be done. Pls. suggest.
Ans: Your commitment to financial planning and goal-setting is commendable. Let's assess your investment portfolio and strategize for achieving your target of reaching ?10 crores in the next 13-15 years.
Your disciplined approach to savings and investment, coupled with clear long-term goals, sets a solid foundation for financial success.
Assessing Current Portfolio Alignment
Your current portfolio comprises a mix of mutual funds, PPF/SSY, and EPF, catering to your high-risk appetite. Let's evaluate the alignment of your portfolio with your target goal.
Analyzing Mutual Fund Selection
Your mutual fund selection reflects a diverse mix across large-cap, mid-cap, and small-cap segments. However, it's essential to consider the following aspects:
Performance History: Regularly monitor the performance of selected funds to ensure they consistently outperform their benchmarks.
Risk Management: Given your high-risk tolerance, focus on funds with a proven track record of managing volatility and delivering superior returns over the long term.
Evaluating PPF/SSY and EPF Contributions
Your continued contributions to PPF/SSY and EPF are prudent, considering their tax benefits and stability. However, ensure that the contribution amounts align with your overall investment strategy and target goal.
Adjustments and Recommendations
Based on the current portfolio and target goal, consider the following adjustments:
Review Fund Selection: Periodically review the performance of mutual funds and make adjustments if any funds underperform or fail to meet expectations.
Consider Additional Asset Classes: Explore diversification opportunities by incorporating other asset classes like international funds or thematic funds to further enhance portfolio growth potential.
Regular Portfolio Monitoring: Stay proactive in monitoring your portfolio's performance and make necessary adjustments to maintain alignment with your financial objectives.
Benefits of Regular Funds Investing through MFD with CFP Credential
Engaging a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential offers several benefits:
Tailored Advice: A CFP can provide personalized advice based on your financial goals, risk tolerance, and investment horizon.
Holistic Financial Planning: Benefit from comprehensive financial planning that considers all aspects of your financial life, including retirement, taxation, and estate planning.
Continuous Monitoring: An MFD with CFP credential can monitor your investments regularly and recommend adjustments as needed to keep your portfolio on track.
Conclusion
Your current investment portfolio exhibits a well-thought-out strategy geared towards long-term growth. However, periodic review and adjustments are essential to ensure alignment with your target goal of reaching ?10 crores in the next 13-15 years. Engaging a Certified Financial Planner can provide valuable guidance and support in optimizing your investment strategy for optimal outcomes.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in