Hi,
My age is 28. Married.
My daughter is 4 months old.
My monthly salary is Rs. 1.22L PM.
Monthly expense - Rs. 35,000
Current commitments are:
Home Loan EMI - Rs. 36,011 (4 months completed. 30 years tenure)
Term Insurance - 1cr (Annual premium - Rs. 36,000 for 10 years. 7 more premium pending)
Current NPS Balance - Rs. 75,000. Investing Rs. 15,000 pm
SSY - Rs. 12,500 pm.
APY - Rs. 409 pm
I'm planning to save for Emergency Corpus Fund, get a medical insurance floater policy.
My short term goal is to save Rs. 20 lakhs within 4 years for registeration and interior work for house.
My long term goals are for daughters UG education, wedding, retirement at 55 years.
I took investment risk test and Im an aggressive investor and planning to invest more on equity. Also, I want to diversify the portfolio and invest across asset class.
Ans: It sounds like you've got a clear vision for your financial future, which is fantastic, especially at your age. With your goals in mind and being an aggressive investor, here's a potential strategy to consider:
Emergency Corpus Fund: Aim for at least 6-12 months' worth of expenses. Start with setting aside a portion of your savings each month until you reach this target.
Medical Insurance: A comprehensive floater policy covering your family is essential. Ensure the coverage amount is adequate to handle potential medical emergencies without denting your savings.
Short-term Goals - House: For the Rs. 20 lakhs target in 4 years, consider equity mutual funds with a mix of mid-cap and large-cap funds. You could also consider debt funds or fixed deposits for stability.
Long-term Goals:
Daughter's UG Education: Equity mutual funds can be a great option, given your aggressive risk profile. Start with diversified equity funds and gradually shift to balanced or hybrid funds as the goal approaches.
Daughter's Wedding: Again, equity mutual funds can be beneficial here. Also, considering gold ETFs or sovereign gold bonds can be a good diversification strategy.
Retirement: NPS is a good start, given its tax benefits and long-term nature. You might want to increase your contributions over time. Additionally, diversify with equity mutual funds and other retirement-oriented funds.
Diversification Across Asset Classes:
Equity: You're already inclined towards equity, so continue investing in diversified equity funds, large-cap, mid-cap, and maybe even some small-cap funds.
Debt: Given your aggressive stance, limit this to around 20-30% of your portfolio. Short to medium-term debt funds or fixed deposits can be considered.
Gold: Gold ETFs or sovereign gold bonds can be a good hedge against market volatility.
Real Estate: Since you're planning for a house, that's a good start. Real estate can be an excellent long-term investment, but ensure it doesn't over-concentrate your portfolio.
Regular Review: As your life progresses, your financial goals and risk appetite may evolve. Regularly reviewing and adjusting your portfolio ensures you stay on track.
Remember, while being aggressive can offer higher returns, it also comes with increased volatility. It's crucial to stay invested for the long term and avoid reacting to short-term market fluctuations. Consulting with a financial advisor can help tailor this strategy further to your needs and provide ongoing guidance.