Hello Sir, I am 24 Years old, My goal - 1 CR in next 10-15 year. As a beginner, I have been making SIP's since last 5 months in ( Parag P Flexi 2k Pm, Axis Small cap 2.5kPm, Motilal oswal midcap 1.5Kpm, ICICI Pru Value Discovery 1 K ) total @7000 per month. (step up 30% every year) . Going forward, >> Now for lumpsum I have identified 1. Nippon India power and Infra , ( as i want to invest in Power sectoral funds) 2. Canara Robeco Bluechip Equity fund OR Mirae Asset Large Cap Fund ( Direct Growth @ 10000 initially) , I plan to add 5k Quarterly until i reach a reasonable lumpsum amount. Please share your valuable suggestions on my plan. and addition or deletion to any funds. Thanks, Dipak

Ans: Your commitment to investing at such a young age is commendable. Achieving Rs 1 crore in the next 10-15 years is a realistic goal with your disciplined approach.

Current SIP Strategy

You have started SIPs in four diversified funds, totaling Rs 7,000 per month. This strategy, combined with a 30% annual step-up, is a strong foundation for growth.

Evaluating Your Fund Selection

Your chosen funds cover flexi-cap, small-cap, mid-cap, and value categories. This diversification is prudent, spreading risk and capturing growth across different market segments.

Lump Sum Investment Strategy

You plan to invest in sectoral and large-cap funds. These choices can add stability and sector-specific growth to your portfolio. Diversifying across sectors reduces risk and enhances potential returns.

Sectoral Fund Considerations

Investing in sectoral funds like power and infrastructure can be rewarding. However, these funds are highly volatile. Ensure they constitute a smaller portion of your portfolio to manage risk.

Large-Cap Fund Choices

Choosing between Canara Robeco Bluechip Equity and Mirae Asset Large Cap Fund is wise. Both funds are known for stability and steady growth. Allocating your lump sum and quarterly investments in these funds balances your portfolio.

Advantages of Actively Managed Funds

Actively managed funds offer professional management, adapting to market changes. This flexibility can result in higher returns compared to passive index funds, which simply track the market.

Disadvantages of Index Funds

Index funds mimic market indices and may not perform well in downturns. They lack the adaptability and professional oversight of actively managed funds, limiting potential returns.

Benefits of Investing Through a Certified Financial Planner

Investing through a Certified Financial Planner ensures tailored advice and professional management. They can help you make informed decisions and optimise your investment strategy.

Disadvantages of Direct Funds

Direct funds have lower expense ratios but lack professional guidance. Investing through a certified planner provides expert oversight, ensuring your portfolio aligns with your goals.

Periodic Review and Rebalancing

Regularly review your portfolio's performance. Rebalancing ensures your investments stay aligned with your financial goals and market conditions. This approach optimises returns and manages risks effectively.

Creating a Comprehensive Financial Plan

In addition to mutual funds, consider other financial aspects like emergency funds, insurance, and tax planning. A holistic financial plan ensures a secure and well-rounded approach to wealth creation.

Monitoring Market Trends

Stay informed about market trends and economic factors. This knowledge helps you make timely adjustments to your investments, maximising returns and mitigating risks.

Conclusion

Your disciplined investment strategy and diversified portfolio are commendable. With regular review and professional guidance, you can achieve your goal of Rs 1 crore in the next 10-15 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in