I'm 35 years old, i started my investment journey in 2022, currently investing 25,000/- p.m, would like to add another 25,000/- p.m of SIP. Would like to build a corpus of 3-4 crore for my retirement and child's education 15-20 years from now.

Current SIP investments:

1. Parag Parikh flexi cap- 5,000

2. Navi nifty index -5,000

3. ICICI sensex index fund 5,000

4. UTI FLEXI Cap 10,000

Please suggest funds to achieve 3-4 crore corpus.

Ans: Rs. 30000 monthly invest will create a corpus of Rs. 3.9 crs in 20 years

Continue with 8, 9, 10, 12, 13 and 14

Ans: No change required

Ans: You've built a diversified portfolio with a mix of large-cap, mid-cap, small-cap, flexi-cap, and sectoral funds, which is a good start towards your ambitious goal. Here are some considerations and recommendations:

Asset Allocation: Given your goal and age, you might want to tilt your portfolio towards more equity-oriented funds. While equities carry higher risk, they also offer potential for higher returns over the long term.
Review & Rebalance: Periodically review your portfolio to ensure it aligns with your goals and risk tolerance. Rebalance if necessary to maintain your desired asset allocation.
Increase SIP Amounts: With a target corpus of 3 crores in 18 years, you might need to consider increasing your SIP amounts annually to account for inflation and potentially higher returns.
Diversification: Ensure you're not overly concentrated in a single asset class or sector. Diversification across asset classes and market caps can help spread the risk.
Consult a Financial Advisor: Given the complexity of financial planning, it might be beneficial to consult a financial advisor who can provide personalized advice based on your financial situation, goals, and risk tolerance.
Remember, investing is a journey, not a destination. Consistency, discipline, and periodic reviews are key to achieving your financial goals.

Ans: You aim to build a Rs. 4 crore corpus in 8 years. Your annual income is Rs. 9 lakhs. This requires strategic planning and disciplined investments in mutual funds.

Systematic Investment Plan (SIP) Strategy
SIP is a disciplined way to invest. It helps in averaging the cost and mitigating market volatility.

Suggested Mutual Fund Categories
Large Cap Funds

These funds invest in large, established companies.
They offer stability and steady returns.
Ideal for risk-averse investors.
Flexi Cap Funds

Flexi Cap funds invest across large, mid, and small caps.
They provide a balanced approach to growth and stability.
Suitable for moderate risk takers.
Mid Cap Funds

Mid Cap funds invest in medium-sized companies.
They offer higher growth potential but come with higher risk.
Good for aggressive investors.
Small Cap Funds

Small Cap funds invest in smaller companies.
They have the highest growth potential but also the highest risk.
Best for very aggressive investors.
Suggested Investment Approach
Diversify Your Investments

Invest in a mix of Large Cap, Flexi Cap, Mid Cap, and Small Cap funds.
This diversification balances risk and return.
Increase SIP Amount Gradually

Start with an affordable SIP amount.
Gradually increase it as your income grows.
This boosts your investment corpus over time.
Avoid Index Funds and Direct Funds
Disadvantages of Index Funds

Index funds are passively managed.
They follow the market index, limiting potential returns.
Lack flexibility to respond to market changes.
Disadvantages of Direct Funds

Direct funds do not offer advisory services.
You miss out on professional guidance and support.
Investing through MFD with CFP credentials provides better advice.
Estimated SIP Amount
To achieve Rs. 4 crore in 8 years, you need a high SIP amount. Considering market returns and inflation, aim for a monthly SIP of around Rs. 1 lakh.

Benefits of Actively Managed Funds
Professional fund managers actively manage these funds.
They aim to outperform the market index.
Higher potential for better returns compared to index funds.
Regular Review and Rebalance
Review your portfolio every six months.
Rebalance it based on performance and market conditions.
This ensures alignment with your financial goals.
Final Insights
Building a Rs. 4 crore corpus in 8 years is ambitious. It requires disciplined SIP investments in a diversified mutual fund portfolio. Focus on actively managed funds through MFD with CFP credentials for better returns and guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in