Hello,Maam i m 46 years old & have equity investment of 34 thousand per month in various MF scheme HOW much corpus can i accumulate in 13yrs as retirement is on 08/2036? My portfolio is as follows 1.canara Robecco small cap fund diret 3000/month 2,Edelweiss midcap fund direct 2500/month 3.Mirae Asset Large cap fund 2500/month 4.PGIM Flexi cap fund 2000/month 5Quant Active fund 2500/month.6,Sbi small cap fund 3000/ month 7Sbi contra fund 2500/ month 8,Sbi magnum midcap fund 2500/ month 9 sbi technology fund 2000/ month 10.Nippon India smallcap fund 2500/ month11Kotak emerging equities fund 3000/ month,12,Hdfc midcap oppurtunities fund 2500/month Moreover my risk appetite is highly aggressive and please suggest any changes required in my portfolio? Thanks.

Ans: Funds are decent, only issue is too many funds. Please continue

Ans: Your portfolio appears to be heavily concentrated in mid-cap and small-cap funds, indicating a high-risk, aggressive approach. Here are some suggestions for consideration:

Diversification: While high-risk investments can offer potential for higher returns, it's crucial to diversify across different asset classes and fund categories to mitigate risk. Consider adding large-cap or multi-cap funds to balance your portfolio.

Review and Rebalance: Regularly review the performance of your funds and rebalance your portfolio if necessary. If any fund underperforms consistently or doesn't align with your investment strategy, consider replacing it with a better-performing alternative.

Risk Management: Understand the risk associated with mid-cap and small-cap funds and ensure that your overall portfolio risk is balanced according to your risk tolerance and investment horizon.

Long-Term Perspective: Stay committed to your investment plan and maintain a long-term perspective. Over a 13-year horizon, equity investments have the potential to deliver significant returns, but there may be periods of market volatility that require patience and discipline.

Regular Contributions: Continue with your SIP contributions regularly, and consider increasing your investment amount over time as your income grows or allocate additional funds towards your investment portfolio.

Seek Professional Advice: If you're uncertain about your investment strategy or need personalized guidance, consider consulting with a financial advisor who can provide tailored recommendations based on your financial situation and goals.

Regarding the potential corpus accumulation in 13 years, it's challenging to provide an exact figure due to the unpredictable nature of the market. However, with a disciplined approach and assuming reasonable market growth, your portfolio has the potential to accumulate a significant corpus over the long term. Regularly monitor your investments and make adjustments as needed to stay on track towards your financial goals.

Ans: Your portfolio consists of a diverse mix of mutual funds across various market segments, including small-cap, mid-cap, large-cap, and flexi-cap funds. However, having such a large number of funds may lead to over-diversification and increase the complexity of managing your portfolio.

Consider consolidating your portfolio by focusing on high-quality funds that align with your investment objectives and risk tolerance. Review the performance of each fund relative to its benchmark and peers. If any fund consistently underperforms or deviates significantly from its investment objective, you may consider replacing it with a better-performing alternative.

As for the corpus accumulation, it would depend on various factors such as the performance of the funds, the consistency of your contributions, and market conditions. You may use online SIP calculators to estimate the potential corpus based on your ongoing SIP contributions and expected returns.

Given your retirement goal at age 60, ensure that your investment strategy is aligned with your long-term financial objectives and risk profile. Consider consulting with a financial advisor for personalized guidance tailored to your specific circumstances.

Ans: It's great to see your proactive approach towards investing and building wealth for your future. Your commitment to mutual funds, PPF, stocks, and ULIPs reflects a well-diversified investment portfolio.

Understanding Your Current Investments

Your investment portfolio comprising mutual funds, PPF, stocks, and ULIPs showcases a balanced mix of asset classes, indicating a thoughtful approach towards wealth creation.

Evaluating Mutual Fund Investment

By investing ?10,000 per month in mutual funds till the age of 55, you're adopting a disciplined savings approach that can potentially yield substantial returns over the long term.

Analyzing Expected Corpus

To estimate the corpus you may accumulate by the age of 55 through your monthly mutual fund investments, we need to consider several factors:

Investment Duration: With approximately 21 years left until you turn 55, your monthly investments have a considerable time horizon to grow.

Rate of Return: The expected rate of return on your mutual fund investments plays a crucial role in determining the final corpus. While past performance is not indicative of future results, historical data can provide insights into potential returns.

Systematic Investment Plan (SIP): Investing through SIPs allows you to benefit from the power of compounding by regularly investing fixed amounts over time.

Estimating Future Corpus

To provide an estimate of the corpus you may accumulate by the age of 55, we can use a conservative annual return assumption for your mutual fund investments.

Considering historical market performance and assuming a moderate annual return rate, we can project the growth of your monthly investments over the next 21 years. By compounding your investments annually, we can calculate the future value of your mutual fund portfolio.

Benefits of Actively Managed Funds

Actively managed mutual funds offer several benefits over passive index funds or ETFs:

Professional Management: Skilled fund managers actively monitor market trends and adjust portfolio allocations to capitalize on growth opportunities, potentially leading to higher returns.

Risk Management: Actively managed funds employ strategies to mitigate risks and optimize returns, providing investors with a balanced risk-return profile.

Final Words

While it's essential to have a long-term investment horizon and a disciplined savings approach, it's equally crucial to regularly review and adjust your investment strategy as per changing market conditions and personal financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in