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Jinal

Jinal Mehta  |93 Answers  |Ask -

Financial Planner - Answered on Jun 24, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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Puneet Question by Puneet on Jun 22, 2024Hindi
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Hello, I'm 35 years old. I'm planning to start a new cycle of SIPs and aspiration is to create a corpus of 1.5 crores in next 10 years. Monthly SIP is 50,000. Below are my mutual funds chosen: Quant midcap fund: 10,000, ICICI Prudential Bluechip Fund: 10,000, Quant Flexi Cap Fund: 10,000, SBI Small Cap Fund: 2,000, SBI PSU Fund: 8,000. Please suggest: - if the above chosen mutual funds are appropriate for this wealth generation, however, if no, please suggest alternatives and also advise if the amount chosen is apportioned is realistic. - if this SIP amount is adequate enough to generate the desired corpus? All are direct growth plans. Should I include Parag Parekh Flexi Cap Fund as well? Regards, Puneet

Ans: I cannot suggest with this limited information. I need to know the tenure, current investment values, goals, risk profile to evaluate your situation and recommend.
Asked on - Jun 24, 2024 | Not Answered yet
Thanks for your revert. My current SIPs accumulate to total INR 20,000 and schemes are as mentioned below: Axis ELSS Tax Saver Growth Direct Plan: Rs. 6,000 Parag Parekh Flexi Cap Fund: Rs. 5,000 HDFC Mid Cap Opportunities Fund: Rs. 1,500 Motilal Oswal Midcap Fund: Rs. 1,200 Nippon India Small Cap Fund: Rs. 1,800 Tata Small Cap Fund: Rs. 2,500 UTI Nifty50 Index Fund: Rs. 2,000 The objective is to use this corpus for my son's higher education after 20 years. These SIPs are already ongoing. My total principle investment value to date is Rs. 3,34,000. However, now I'm thinking of starting a new cycle of SIPs for an aggregate of Rs. 50,000 and funds chosen as highlighted in the question. The plan is to have Rs. 30,000 for our retirement for the tenure of 30 years from 2024 to 2054 and the remaining amount of Rs. 20,000 for withdrawals every 6 years. My risk profile is aggressive. Please suggest: - If the selection of mutual funds can help me reach my objectives. - If the allocation towards the respective mutual funds is sufficient and appropriate. Please advise if you would like me to make any amendments.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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I have invested in below mutual funds via SIP from Jan 2018 and will continue the investment for another 12-13 years. I want to build a Retirement Corpus of 4 to 5 crores.  My risk profile is Aggressive/Moderate and want a mix of Equity & Debt Funds. My current portfolio is as follows:  1) Aditya Birla Sunlife Focussed Equity Fund-Growth - 2000 per month  2) L & T Midcap Fund Cumulative - 2000 per month  3) Mirae Asset Large Cap Fund -Growth - 2000 per month  4) SBI Magnum Multicap Fund - Growth - 2000 per month  5) Sundaram Rural Consumption Fund Regular Growth - 2000 per month. 6) Axis Bluechip Fund G - Direct Plan - 2000 per month (This is only 5 Months Old SIP) Please suggest if i want to increase the current SIP amount of 12000 per month to reach the goal & if the above portfolio needs to be tweaked to better funds.  SIP of Rs. 12K can build a corpus of Rs. 60 lakhs only in 15 years …  for 4 to 5 crs , SIP amount needs to be Rs. 75000 to Rs. 100000
Ans:
Name of the Fund Category RankMF Star Rating Recommendations
Sahil Dhamija      
1) Aditya Birla Sunlife Focussed Equity Fund-Growth - 2000 per month  Equity - Focused Fund 3 switch to Axis Focused 25 Fund  - Growth
2) L & T Midcap Fund Cumulative - 2000 per month  Equity - Mid Cap Fund 3 Switch to - Dsp Midcap Fund - Growth
3) Mirae Asset Large Cap Fund -Growth - 2000 per month  Equity - Large Cap Fund 4 Continue
4) SBI Magnum Multicap Fund - Growth - 2000 per month  Equity - Multi Cap Fund 3 Switch to UTI Equity fund  - Growth
5) Sundaram Rural Consumption Fund Regular Growth - 2000 per month. Equity - Thematic Fund - Other 2 switch to Axis ESG Fund  - Growth
6) Axis Bluechip Fund G - Direct Plan - 2000 per month Equity - Large Cap Fund 3 Switch to UTI MasterShare - Growth

..Read more

Ramalingam

Ramalingam Kalirajan  |6345 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

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Puneet Asked on - Jun 16, 2024 Hello, I'm 35 years old. I'm planning to start a new cycle of SIPs and aspiration is to create a corpus of 1.5 crores in next 10 years. Monthly SIP is 50,000. Below are my mutual funds chosen: Quant midcap fund: 10,000, ICICI Prudential Bluechip Fund: 10,000, Quant Flexi Cap Fund: 10,000, SBI Small Cap Fund: 2,000, SBI PSU Fund: 8,000. Please suggest: - if the above chosen mutual funds are appropriate for this wealth generation, however, if no, please suggest alternatives and also advise if the amount chosen is apportioned is realistic. - if this SIP amount is adequate enough to generate the desired corpus? All are direct growth plans. Should I include Parag Parekh Flexi Cap Fund as well? Regards, Puneet
Ans: Puneet,

Your aspiration to create a corpus of Rs 1.5 crores in 10 years is commendable. Let's evaluate your current mutual fund choices and the allocation.

Current Allocation

Quant Midcap Fund: Rs 10,000

ICICI Prudential Bluechip Fund: Rs 10,000

Quant Flexi Cap Fund: Rs 10,000

SBI Small Cap Fund: Rs 2,000

SBI PSU Fund: Rs 8,000

Evaluation of Funds

Diversification: You have chosen a mix of large-cap, mid-cap, flexi-cap, small-cap, and sector funds. This ensures a diversified portfolio.

Risk Management: The inclusion of large-cap and flexi-cap funds helps balance the higher risk from mid-cap, small-cap, and sector funds.

Growth Potential: Mid-cap, small-cap, and flexi-cap funds offer high growth potential, though they carry higher risk.

Actively Managed Funds vs. Index Funds

Actively Managed Funds: Provide better adaptability to market conditions. Managed by professionals aiming to outperform the market.

Index Funds: Track specific indices and cannot adapt to market changes. May underperform compared to actively managed funds.

Disadvantages of Direct Plans

Lack of Guidance: Direct plans require self-research and decision-making.

Higher Risk: Greater potential for mistakes without professional advice.

Time-Consuming: Requires continuous monitoring and adjustments.

Benefits of Regular Plans Through CFP

Expert Advice: Certified Financial Planners (CFPs) provide tailored advice.

Holistic Planning: CFPs consider your overall financial goals and situation.

Ongoing Support: Regular reviews and adjustments to your strategy.

Is Your SIP Amount Adequate?

To assess if Rs 50,000 monthly SIP is adequate:

Expected Returns: Assuming an average annual return of 12-15%, your target is achievable.

Consistency: Staying invested for the full 10 years is crucial for compounding to work.

Adding Parag Parekh Flexi Cap Fund

Flexi Cap Funds: They offer a balance between risk and return by investing across market caps.

Evaluation: Adding another flexi-cap fund can further diversify your portfolio.

Suggested Adjustments

Review Sector Fund Allocation: Consider reducing the sector fund allocation if you want a more balanced portfolio.

Increase in Large-Cap Allocation: You may increase large-cap allocation for more stability.

Final Insights

Puneet, your current fund choices show a good mix of diversification and growth potential. With disciplined investing and regular reviews, achieving your Rs 1.5 crore goal in 10 years is realistic. Consider consulting a Certified Financial Planner for tailored advice and ongoing support.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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