Hi Sir, I am investing in SIP since last 5years and presently below are the SIP's. 1. PARAG PARIKH FLEXI CAP FUND - GROWTH - 15000, 2. SBI FOCUSED EQUITY FUND REGULAR GROWTH -5000 ,3. Mirae Asset Emerging Bluechip Fund - 25000 , 4. Canara Robeco Bluechip Equity Fun - 5000 , 5. Mirae Asset Large Cap - 10000 6. AXIS MIDCAP FUND - 10000 . Apart from SIP , PPF and SSY - 1.5lakh /year each With the SIP's any modification required please suggest. and my goal plan is as my daughter aged 5years now for her Education ,marriage and self retirements after 20 years and a house of 50lakhs at 2030. can it be ok . give more idea on this financial planning base on my goal.

Ans: Hi Prateek & thanks for writing back.

As your goal is to invest for 15 years, I recommend that for the first 10 to 12 years, you invest via SIP's in equity funds. Then, you pause your investments in equity funds & begin SIP's in balanced advantage funds & multi asset funds for the remainder 2-3 years.

You can consider beginning SIP's in:

1-Parag Parikh Flexicap Fund
2-Samco Flexicap Fund
3-Axis Flexicap Fund
4-SBI Multicap Fund
5-Canara Robeco Multicap Fund
6-Kotak Emerging Equity Fund
7-Tata Smallcap Fund

Do note that if you share other details, I may recommend other schemes. Periodic rebalancing is essential to ensure you are on the right track.

Ans: You're on the right track by investing through SIPs and the SSY plan for your children's future needs. To achieve a retirement income of ?3 lakhs per month at age 55, consider increasing your monthly investment amount and diversifying your portfolio across various asset classes. Alongside equity mutual funds, consider investing in debt funds, PPF, and NPS for a balanced portfolio. Regularly review and adjust your investments based on market conditions and your financial goals. Consulting a financial advisor can help you create a personalized retirement plan aligned with your income requirements and retirement goals.

Ans: It's fantastic to see your dedication to investing and planning for your future and your daughter's. Let's dive into your current SIP portfolio and goal planning:
• Firstly, kudos on maintaining a disciplined approach to SIP investing over the past five years. Consistency is key!
• Your SIP portfolio consists of a mix of flexi-cap, large-cap, mid-cap, and focused equity funds, providing diversification across market segments.
• Additionally, investing in PPF and SSY reflects your commitment to long-term savings and securing your daughter's future.
Now, let's focus on your goals:
• Education & Marriage: Allocating funds for your daughter's education and marriage is crucial. Consider estimating the future expenses for these goals and adjusting your investment allocations accordingly.
• Retirement: Planning for your retirement after 20 years is wise. Ensure your investment portfolio aligns with your retirement goals and risk tolerance. Regularly review and adjust your investments as needed.
• Home Purchase: Saving for a house by 2030 is a significant goal. Factor in inflation and property price trends while estimating the required corpus. You may need to increase your savings rate or explore additional investment avenues.
Here are some additional pointers:
• Regular Review: Periodically review your investment portfolio to ensure it remains aligned with your goals and risk tolerance.
• Emergency Fund: Build an emergency fund equivalent to 6-12 months of expenses to handle unforeseen financial challenges.
• Professional Advice: Consider consulting with a Certified Financial Planner to fine-tune your financial plan and receive personalized advice tailored to your goals and circumstances.
Remember, financial planning is a dynamic process, and adjustments may be needed along the way. Keep up the good work, and if you have any further questions or need assistance, feel free to reach out. You're on the right track to financial success!

Ans: Reviewing your SIP (Systematic Investment Plan) strategy and goals is essential for ensuring you are on the right path to achieving your financial objectives. You have a well-diversified portfolio focusing on small-cap, mid-cap, and large-cap funds. However, let's take a closer look to ensure your investments align with your goal of accumulating a corpus of Rs 3-5 crore in the next 15 years for your children's education.

Understanding Your Current Portfolio
You are investing Rs 30,000 monthly across six different funds:

Quant Small Cap
Nippon Small Cap
SBI Small Cap
Kotak Emerging Equity Mid Cap
Quant Large and Mid Cap
Motilal Oswal Mid Cap
Your portfolio is diversified across small-cap, mid-cap, and large-cap funds, which is a good strategy for long-term growth. However, it's important to assess the performance, risk, and potential returns of these funds.

Evaluating Small-Cap Funds
Small-cap funds tend to have higher growth potential but also come with increased volatility and risk. You are investing in three small-cap funds, which may expose you to significant market fluctuations. While this can be beneficial in a bull market, it could be detrimental during market downturns.

Consider reducing your exposure to small-cap funds and reallocating some of your investments to more stable options within your mid-cap or large-cap funds. This will help balance your risk and potentially provide more consistent returns.

Assessing Mid-Cap Funds
Mid-cap funds offer a balance between growth and stability. They typically provide higher returns than large-cap funds but with less volatility than small-cap funds. You have chosen Kotak Emerging Equity Mid Cap and Motilal Oswal Mid Cap, which are strong contenders in this category.

It's essential to monitor the performance of these funds regularly. Look at their historical returns, fund manager's track record, and consistency in performance. If they continue to perform well, they can be a core part of your portfolio.

Analyzing Large and Mid-Cap Funds
The Quant Large and Mid Cap fund provides exposure to both large-cap and mid-cap stocks. This mix can offer a good balance of stability and growth. Large-cap stocks provide stability and steady returns, while mid-cap stocks offer growth potential.

Ensure that this fund aligns with your risk tolerance and investment goals. If it shows consistent performance, it can be a reliable part of your portfolio.

Adjusting Your Investment Strategy
Given your goal of accumulating Rs 3-5 crore in 15 years, let's consider the potential growth of your current investments. Assuming an average annual return of 12% (a reasonable expectation for a diversified equity portfolio), we can estimate the future value of your investments.

Based on the current monthly SIP of Rs 30,000:

In 15 years, the estimated corpus would be approximately Rs 1.5 crore.
This amount is significantly lower than your target of Rs 3-5 crore. To bridge this gap, you might need to increase your monthly investment.

Increasing Your SIP Amount
To achieve a corpus of Rs 3-5 crore, you need to increase your monthly SIP. Here's an estimate of the required monthly investment:

To reach Rs 3 crore in 15 years, you would need to invest approximately Rs 60,000 per month.
To reach Rs 5 crore in 15 years, you would need to invest approximately Rs 1,00,000 per month.
These estimates assume an average annual return of 12%. Adjusting your SIP amount to these levels will significantly enhance your chances of achieving your financial goals.

The Importance of Consistent Monitoring
It's crucial to review and monitor your investments regularly. Financial markets are dynamic, and the performance of mutual funds can change over time. Regular reviews help ensure your investments are on track to meet your goals.

Consider seeking the advice of a Certified Financial Planner (CFP) who can provide personalized guidance based on your financial situation and goals. A CFP can help you make informed decisions, adjust your investment strategy as needed, and provide peace of mind.

Diversifying Across Different Asset Classes
While you have a well-diversified portfolio within equity funds, it's also wise to consider other asset classes for overall financial stability. Diversifying across different asset classes like debt funds, gold, and other fixed-income instruments can provide stability to your portfolio and reduce overall risk.

Disadvantages of Direct Funds
You may have heard about investing in direct funds to save on expense ratios. However, direct funds come with their disadvantages:

Lack of Professional Guidance: Investing directly means you won't have the expertise of a Certified Financial Planner to guide you.
Time and Effort: Managing and monitoring investments on your own can be time-consuming and challenging.
Risk of Mistakes: Without professional guidance, there's a higher risk of making uninformed decisions that could impact your returns.
Benefits of Regular Funds through a CFP
Investing in regular funds through a CFP offers several benefits:

Expert Advice: A CFP provides personalized advice based on your financial goals and risk tolerance.
Portfolio Management: Regular monitoring and adjustments to your portfolio ensure it remains aligned with your goals.
Peace of Mind: Professional guidance gives you confidence that your investments are on the right track.
The Role of Financial Planning in Achieving Goals
Financial planning goes beyond just selecting the right mutual funds. It involves comprehensive planning to ensure all aspects of your finances are in order. This includes:

Retirement Planning: Ensuring you have enough savings and investments to enjoy a comfortable retirement.
Insurance Planning: Protecting your family and assets with adequate insurance coverage.
Tax Planning: Minimizing tax liabilities through efficient tax planning strategies.
Estate Planning: Ensuring your assets are distributed according to your wishes.
A holistic approach to financial planning helps you achieve all your financial goals and provides financial security for you and your family.


We understand the importance of providing quality education for your children. It's a noble goal and one that requires careful planning and dedication. Your proactive approach to investing through SIPs shows your commitment to securing your children's future.


You've made a great start by investing in mutual funds and seeking advice on how to improve your strategy. Your dedication to building a substantial corpus for your children's education is commendable. It's clear you are focused on their future and willing to take the necessary steps to ensure their success.

Final Insights
In conclusion, you are on the right track with your SIP investments. However, to achieve your goal of Rs 3-5 crore in 15 years, you need to increase your monthly SIP amount. Diversify your investments, reduce exposure to high-risk small-cap funds, and seek professional guidance from a Certified Financial Planner. Regular reviews and adjustments to your portfolio will ensure you stay on track to meet your financial goals. Your dedication and proactive approach will undoubtedly benefit your children's future education.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: Your investment strategy is off to a great start. You're investing Rs. 60,000 per month across three funds. Additionally, you contribute Rs. 14,000 monthly to NPS, Rs. 12,000 to EPF, and Rs. 10,000 to PPF. These contributions reflect a disciplined approach to long-term wealth creation.

However, the goal of building a Rs. 1 crore education fund by 2034 for your children is ambitious. With the right strategy, it is achievable.

Reviewing Your Mutual Fund Investments
Fund Selection: Your current SIPs in Parag Parikh Flexi Cap, SBI Bluechip, and HDFC Large and Midcap are diversified across different market caps. This is a solid strategy, as it balances risk and return.

Flexi Cap Fund: This type of fund gives the fund manager the flexibility to switch between market caps based on market conditions. This can be advantageous, but the performance is highly dependent on the manager's skill.

Bluechip Fund: Large-cap funds like SBI Bluechip are relatively safer. They invest in established companies with a stable track record. This provides stability but limits the potential for very high returns.

Large and Midcap Fund: The HDFC Large and Midcap Fund balances the stability of large caps with the growth potential of mid-caps. This adds a layer of moderate risk to your portfolio.

Considering your goal, a mix of growth-oriented funds (like mid-cap and flexi-cap) and stability-focused funds (like large-cap) is good. However, given the education goal for your kids, a more aggressive strategy in the early years could potentially yield higher returns.

Contribution to NPS, EPF, and PPF
NPS: The National Pension System (NPS) is a good option for retirement planning. Your Rs. 14,000 monthly contribution is tax-efficient and offers decent returns. However, NPS has a lock-in until retirement, which may limit liquidity.

EPF: Your Rs. 12,000 contribution to EPF is another safe, tax-efficient option. It provides guaranteed returns and adds to your retirement corpus.

PPF: PPF is a safe investment with tax benefits. Your Rs. 10,000 monthly contribution ensures stable, long-term growth. However, the returns from PPF are modest compared to equity investments.

Assessing the ICICI Smart Kid Policy
Policy Overview: The ICICI Smart Kid policy is a combination of insurance and investment. You’ve been contributing Rs. 48,000 annually since 2016.

Policy Efficiency: Investment-cum-insurance policies generally offer lower returns compared to pure investment products like mutual funds. Moreover, the insurance coverage might not be adequate. It’s often better to separate insurance and investment.

Recommendation: Given the long-term goal and the potential underperformance of such policies, consider surrendering this policy and reallocating the funds to higher-performing mutual funds. You can use the surrender value to boost your SIP contributions.

Is Your Current SIP Sufficient for Rs. 1 Crore by 2034?
Projection: Your current SIP of Rs. 60,000 per month in the mentioned funds will need to grow at a significant rate to reach Rs. 1 crore by 2034. Assuming an average annual return of 12%, which is realistic for equity mutual funds, your portfolio could grow substantially. But it’s crucial to periodically review and adjust your SIP amounts to stay on track.

Potential Shortfall: If the market underperforms, you may face a shortfall. To mitigate this risk, consider increasing your SIP amount or reallocating funds to more aggressive growth options like mid-cap or small-cap funds. This can help bridge any potential gaps in your target amount.

Strategy for Retirement Planning
Current Contributions: Your NPS, EPF, and PPF contributions are all directed towards retirement. However, you should assess whether these will be sufficient to meet your retirement goals, considering inflation and lifestyle needs.

Retirement Corpus: The goal should be to accumulate a corpus that can generate a steady post-retirement income, adjusted for inflation. Given your current age and the fact that you have 20 years until retirement, you should focus on building a corpus that can sustain your desired lifestyle.

Asset Allocation: As you get closer to retirement, gradually shift towards safer assets like debt funds or fixed income instruments. But for now, focus on growth through equity funds.

Reevaluating Your Insurance Needs
Insurance Coverage: Ensure you have adequate life insurance, separate from your investments. Term insurance is a more cost-effective way to secure your family's future.

Health Insurance: Since you didn’t mention health insurance, it’s crucial to ensure you have adequate coverage for unforeseen medical expenses. If you don’t have one, consider a comprehensive family health insurance plan.

Final Insights
Increase SIP: Consider increasing your monthly SIP by at least Rs. 10,000 to ensure you meet your education goal for your children. This can be done gradually, as your income grows.

Reallocate Funds: Evaluate the ICICI Smart Kid policy and consider surrendering it to reallocate the funds to mutual funds. This could potentially offer better returns for your child’s education and your retirement planning.

Retirement Planning: Keep your focus on building a retirement corpus that accounts for inflation and rising expenses. Your current contributions are on track, but regular reviews are essential.

Regular Monitoring: Review your investments at least once a year. This will help you stay aligned with your goals and make necessary adjustments.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in