Hello sir, I invest around 70k in MF every month, but my MF investments are mostly in Equity funds and in multiple different funds , some of them the SIP amount is as low as 1000 Rs a month. Am I loosing money by making such low investments in multiple funds as compared to investing larger money in selected funds? Is it possible to achieve 2Cr if the investment horizon is 10years?

Ans: You would need SIP of Rs 18K to achieve the required target in 15 years.

The funds that may be considered are:

Ans: Further details required

Present age

Monthly Investment / SIP

There is no need to disclose your folio numbers.

Ans: Starting your retirement planning at 43 with a clear goal of Rs. 1.5 crore is a great decision! Your choice of SIP (Systematic Investment Plan) is a smart way to invest regularly. Let's see how your chosen funds can help you reach your target.

Strengths of Your Plan:

Diversification: Your selection includes flexi-cap, blue-chip, large & mid-cap, and focused funds, offering diversification across market capitalizations and investment styles.
Long-Term Focus: A 15-year investment horizon allows you to benefit from the potential of equity markets for long-term growth.
Regular Investment: SIP ensures disciplined investing and benefits from rupee-cost averaging.
Points to Consider:

Target Achievement: Reaching Rs. 1.5 crore depends on market performance. Actively managed funds aim to outperform the market, but past performance doesn't guarantee future results.
Asset Allocation: Review the percentage allocation across each fund category to ensure it aligns with your risk tolerance.
Benefits of a CFP

A Certified Financial Planner (CFP) professional can provide a more personalized assessment. They can help you:

Calculate Retirement Corpus: Determine the total investment amount needed for your desired retirement lifestyle.
Refine Asset Allocation: Ensure your chosen mix of funds matches your risk tolerance and goals.
Monitor & Rebalance: Track your portfolio performance and rebalance periodically to maintain your asset allocation.
Regular Plan vs Direct Plan

Regular plans with a CFP professional can offer some advantages over direct plans. A CFP can:

Minimize Costs: Help you potentially find ways to reduce investment expenses.
Stay on Track: Guide you through market volatility and keep you invested for the long term.
Remember:

Market fluctuations can impact your returns. However, your diversified approach, long-term focus, and SIP strategy are positive steps towards your Rs. 1.5 crore goal.

Next Steps:

Consider consulting a CFP professional for a detailed analysis of your plan.
Regularly monitor your portfolio performance and rebalance as needed.
Keep saving and investing for a happy retirement!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Evaluating Your Investment Strategy
Introduction
Congratulations on starting a disciplined investment journey. Investing ?25,000 per month and planning to increase it by 10% every six months shows a strong commitment.

Current Strategy Assessment
Investing in five different mutual funds each month is a diversified approach. However, consistency is key in mutual fund investments.

Benefits of Systematic Investment Plans (SIPs)
SIPs offer the advantage of rupee cost averaging and discipline. Sticking to a set of funds through SIPs ensures regular investments without market timing.

Diversification and Consistency
Diversification across different mutual funds is beneficial. However, investing in too many funds can lead to overlap and management challenges.

Recommended Approach
Stick to Consistent SIPs: Choose five well-performing funds and invest consistently in them via SIPs.

Review and Rebalance: Regularly review your funds' performance and rebalance if needed. This keeps your portfolio aligned with goals.

Fund Selection
Choose funds that align with your risk tolerance and financial goals. A mix of large-cap, mid-cap, and multi-cap funds can provide balanced growth.

Suggested Allocation
Large-Cap Fund: ?5,000
Mid-Cap Fund: ?5,000
Multi-Cap Fund: ?5,000
Balanced Advantage Fund: ?5,000
Debt Fund: ?5,000
This allocation provides exposure to different market segments, ensuring diversification and stability.

Increasing Investments
Your plan to increase investments by 10% every six months is excellent. It leverages the power of compounding and accelerates wealth creation.

Example
Starting with ?25,000 and increasing by 10% every six months can significantly boost your corpus over nine years.

Achieving the ?1 Crore Goal
Your goal of accumulating ?1 crore by age 56 is achievable with disciplined investing and regular reviews.

Estimated Returns
Assuming a moderate annual return of 12%, your increasing SIP strategy can help you reach your target. The key is consistency and regular increments.

Monitoring and Adjusting
Regularly monitor your portfolio's performance. Make adjustments based on market conditions and fund performance. Consulting a Certified Financial Planner (CFP) can provide personalized guidance.

Professional Advice
A CFP can help you navigate market complexities, select the right funds, and make necessary adjustments. They offer tailored advice aligning with your financial goals.

Conclusion
Sticking to a consistent SIP strategy with a mix of funds and increasing investments regularly is a prudent approach. Regular monitoring and professional advice can help you achieve your ?1 crore goal by age 56.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello Prateek & thanks for writing to me. Assuming that you are able to generate an XIRR of 12%, you will be able to create a corpus of Rs.1 Crore in around 10 years.

As your time horizon is 10 years, I recommend you invest only in equity schemes which can potentially generate higher returns than hybrid schemes like a balanced advantage fund or dynamic asset allocation fund.

You can consider investing equally in:

1.Small Cap Scheme
2.Mid Cap Scheme
3.Flexi Cap Scheme
4. Multi Cap Scheme

Your 5th scheme can be a thematic scheme like a momentum fund or a special opportunities fund or a broader category like a special opportunities fund.

You can consider investing solely in equity schemes for the first 7 to 8 years and then change the asset allocation to have a mix of hybrid schemes like BAF/DAAF's, Multi Asset Funds and aggressive hybrid funds in the last 2-3 years of your 10 year horizon.