Hope you are doing fine.

My name is H K Srivastava, and I am a retired professional of 61 years old.

Could you please suggest:

1. A good debt fund for time horizon of 3-4 years (maximum 5 years) with maximum returns

2. Good liquid funds for time horizon of a maximum of two years with maximum returns.

Ans: Please continue

Ans: For short-term liquidity needs with capital protection as a priority, investing in liquid and ultra-short duration mutual funds can be a suitable option. Here are three categories of funds along with recommendations:

Less than 1 month:
Liquid Funds: These funds invest in very short-term money market instruments with a maturity of up to 91 days, ensuring high liquidity and stability.
Recommended Fund: Axis Liquid Fund, ICICI Prudential Liquid Fund, Aditya Birla Sun Life Liquid Fund.
1-6 months:
Ultra Short Duration Funds: These funds invest in debt and money market instruments with a slightly longer duration than liquid funds, typically up to 6 months.
Recommended Fund: Kotak Savings Fund, HDFC Ultra Short Term Fund, SBI Magnum Ultra Short Duration Fund.
More than 6 months:
Low Duration Funds: These funds invest in debt securities with a maturity between 6 months to 1 year, providing relatively higher returns than liquid and ultra-short duration funds.
However, it's essential to review the specific schemes offered by these fund houses and consult with a financial advisor to ensure they align with your investment goals and risk tolerance.

Ans: You are stepping up your SIPs every six months, which is excellent. Here's a look at your current portfolio:

Quant Small Cap Fund: Rs. 2,000
Nippon India Small Cap Fund: Rs. 2,000
Motilal Oswal Midcap Fund: Rs. 1,500
Nippon India Large Cap Fund: Rs. 1,500
Parag Parikh Flexi Cap Fund: Rs. 2,000
Nippon India IT Index Fund: Rs. 1,000
Portfolio Assessment
1. Diversification:

Your portfolio is well-diversified across small, mid, and large-cap funds. This is good for risk management.

2. IT Index Fund:

IT sector-specific funds can be volatile. Consider exiting the IT index fund. Redirect this amount to a more diversified or balanced fund.

Adding Debt Funds
1. Stability:

Debt funds provide stability to your portfolio. They are less volatile compared to equity funds.

2. Recommended Debt Funds:

Choose debt funds with a good track record and lower expense ratio. Look for funds investing in high-quality debt securities.

Final Suggestions
1. Exit IT Index Fund:

Reallocate the Rs. 1,000 from the IT index fund to a debt fund.

2. Add a Debt Fund:

Invest Rs. 1,000 in a suitable debt fund to balance your portfolio.

3. Continue Stepping Up SIPs:

Your strategy of stepping up SIPs every six months is commendable. It will help you reach your financial goals faster.


Your diversified approach is good, but exiting the IT index fund for a debt fund will add stability. Keep stepping up your SIPs and monitor your portfolio regularly for the best results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: For a balanced approach, consider investing Rs 15 lakh in a mix of hybrid and debt funds.

Hybrid Funds: Invest in balanced or dynamic asset allocation funds for moderate risk and potential growth.

Debt Funds: Opt for long-duration or corporate bond funds for stability and tax efficiency.

Keep Rs 4 lakh in FD/Liquid Funds for emergencies. Regularly review the portfolio for optimal growth and safety.

For a more personalized and scheme-specific recommendation, I would advise you to consult with a Certified Financial Planner (CFP) like us. We can tailor the investment strategy to your unique financial goals and risk tolerance.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment