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Ramalingam Kalirajan |8111 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 13, 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

Asked by Anonymous - May 08, 2024Hindi

Hello Sir, I am planning to retire early with a net worth of 5 crore. Current Age: 29 yrs Investment: 1. EPF - 10 lakhs 2. PPF - 6.57 lakhs 3. NPS - 1.3 lakhs 4. M/F - 17.7 lakhs 5. Stocks - 6 lakhs 6. F/D - 1.4 lakhs 7. Bonds - 3.32 lakhs 8. ULIP - 4 lakhs. SIP: 23500/- per month ULIP: 5200/- p.m. NPS: 5000/- p.m. And based on extra cash, I invest in FD/Stocks. Is my portfolio in the current track wrt my Target path? Please suggest if I should look into more investments or increase the amount in the current category itself. Thank you.

Ans: Your early retirement goal with a net worth of 5 crore at 29 is commendable and shows your financial prudence and foresight. Let's assess your current investment portfolio.

Your allocation across various investment avenues reflects a balanced approach. EPF, PPF, and NPS provide stability and tax benefits, while MFs, stocks, and ULIPs offer growth potential. This mix aligns well with your long-term objectives.

However, there's room for optimization. Considering your age and risk appetite, you may explore increasing exposure to equities. Equities have historically outperformed other asset classes over the long term, albeit with higher volatility.

Regularly reviewing and adjusting your SIPs and ULIP contributions can capitalize on market opportunities and mitigate risks. Additionally, diversifying further within equities, perhaps through sector-specific or thematic funds, can enhance portfolio resilience.

While FDs and bonds offer safety, their returns may not outpace inflation, potentially eroding purchasing power over time. Reassess their role in your portfolio vis-a-vis your goals and risk tolerance.

Moreover, working with a Certified Financial Planner can offer personalized guidance tailored to your financial aspirations, risk tolerance, and time horizon. They can help optimize your portfolio, navigate market fluctuations, and stay on track towards your retirement goal.

In conclusion, your current investment trajectory aligns well with your retirement aspirations. However, optimizing asset allocation, particularly towards equities, and periodic review with a Certified Financial Planner can further strengthen your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Asked on - Jun 12, 2024 | Answered on Jun 13, 2024

Thank you Sir for your feedback

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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