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Ramalingam Kalirajan |7550 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Venkatesh on Dec 14, 2023Hindi

Hello Sir, myself Venkatesh aged 35 working in PSU current monthly takehome salary is Rs.1.20lac investing Rs.1,50,000/- in PPF per annum, havings corpus in fixed deposits around Rs.30lacs, investing in Mutual funds through monthly SIP of Rs.8000/- in three funds from past 3years 1.Parag Parikh Flexi Cap Fund-Reg(G)- 3K 2. Mirae Asset Large Cap Fund-Reg(G)- 3K 3. Axis Focused 25 Fund-Reg(G)- 2K. Now i want to invest another Rs.15,000/- per month for 18-20years and also advise by what amount i can stepup my existing portfolio for better returns.

Ans: Dear Venkatesh,

Thank you for sharing your financial details and investment strategy. Your disciplined approach towards saving and investing is commendable, and it's great to see your proactive efforts towards planning for the future.

Considering your current financial situation and goals, here's a suggested plan for investing an additional ?15,000 per month and optimizing your existing portfolio:

New Investment of ?15,000 per Month:

Given your investment horizon of 18-20 years, you have the opportunity to invest in equity-oriented mutual funds to potentially achieve long-term growth.
Since you already have exposure to flexi-cap, large-cap, and focused equity funds, you can consider diversifying further by investing in mid-cap or multi-cap funds to capture opportunities across different market segments.
Allocate the additional ?15,000 per month across 2-3 mutual funds to ensure proper diversification and mitigate risk.
Portfolio Step-Up:

Evaluate the performance of your existing SIPs in Parag Parikh Flexi Cap Fund, Mirae Asset Large Cap Fund, and Axis Focused 25 Fund.
Consider increasing your SIP contributions gradually over time to capitalize on the power of compounding and accelerate wealth accumulation.
Utilize the step-up SIP feature offered by mutual fund platforms to automatically increase your SIP amounts by a predefined percentage or fixed amount annually.
Review your portfolio periodically and adjust your SIP contributions as needed to stay aligned with your investment goals and risk tolerance.
Regular Review and Rebalancing:

Periodically review your investment portfolio and asset allocation to ensure that it remains aligned with your financial goals and risk tolerance.
Rebalance your portfolio as needed to maintain your desired asset allocation and optimize returns. This involves selling overperforming assets and reinvesting the proceeds into underperforming or undervalued assets.
Consultation:

Consider consulting with a qualified financial advisor who can provide personalized guidance tailored to your financial objectives and risk profile.
An advisor can help you assess your current portfolio, identify any gaps or areas for improvement, and recommend suitable investment options to achieve your long-term financial goals.
By following these steps and staying disciplined with your investment strategy, you can work towards building a strong financial foundation and achieving your financial aspirations.

Best regards,

Ramalingam, MBA, CFP
Chief Financial Planner

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