Hi Milind, Good day!! I am 49 years old having a monthly SIP of 80 K monthly in A) Nippon Small Cap - 10 k B) MOSL Mid cap- 7.5K C) SBI Contra- 7.5 k D) ICICI BHARAT 22 FOF- 10k E) ICICI Nifty Next 50- 7.5k F) SBI ( ELSS) long term equity- 10 K G) Parag Parikh Flexi cap- 7.5K H) Quant Large & Mid cap- 10K I) QUANT infra- 5k J) Aditya Birla PSU- 5 K Kindly guide if the allocation and SIP amount is correct. I am targetting a corpus of 3cr+ in next 11 years. Regards, Kaushik

Ans: Hello, the corpus amount depends on the time duration you will be investing, For eg if you are investing for 15yrs then your corpus at 12% xirr will be approx Rs.54.95L

Ans: Current Investment Strategy

You're investing Rs. 41,000 monthly in mutual funds.
Your portfolio has a mix of different fund types.
You plan to invest till 2030 and stay invested after.

Positive Aspects

Good job starting SIPs for wealth creation.
Your portfolio has a nice mix of fund types.
Long-term investment plan is smart for wealth building.

Areas for Improvement

Your portfolio might be too complex to manage.
Too many small-cap funds could increase risk.
Direct plans need more work from you.

Risk Assessment

At 59, you might want less risky investments.
Small-cap funds can be very risky.
Consider reducing small-cap exposure as you age.

Fund Selection

Your funds are from good companies.
But having six funds might be too many.
Think about cutting down to 3-4 funds.

Regular vs Direct Plans

Direct plans have lower costs, but need more work.
Regular plans give you expert help.
A Certified Financial Planner can guide you better.

Benefits of Regular Plans

Get expert advice on fund selection.
Regular portfolio reviews and rebalancing.
Help with paperwork and tax planning.

Disadvantages of Direct Plans

You must research and choose funds yourself.
No professional guidance for your portfolio.
Might miss out on better investment options.

Suggested Changes

Think about moving to regular plans.
Reduce number of funds to 3-4.
Lower your small-cap exposure.

Asset Allocation

Have a good mix of large, mid, and small-cap.
Add some debt funds for stability.
Review allocation yearly and adjust as needed.

Tax Planning

Check if you're using ELSS funds for tax saving.
If not, consider adding one to your portfolio.
This can help reduce your tax burden.

Monitoring and Rebalancing

Check your portfolio performance every 6 months.
Change funds if they don't do well for long.
Keep your asset mix in line with your goals.

Finally

Your investment plan is good, but needs some tweaks.
Consider expert help for better results.
Regular review and rebalancing can improve your returns.

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

Ans: Your planned SIP portfolio looks diversified across large-cap, flexi-cap, and multi-asset categories, which is a thoughtful approach. However, it's crucial to review your choices periodically and ensure they align with your risk profile, time horizon, and long-term goals. While these funds seem balanced, factors like fund manager changes, market conditions, and personal financial situations can shift over time. I strongly recommend consulting a Certified Financial Planner (CFP) or a trusted Mutual Fund Distributor (MFD) to customize this plan further and ensure it suits your unique needs before making any final investment decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ans: Hello;

I recommend the following fund wise allocation:

1. Franklin India ELSS tax saver: 20 K
2. PPFAS flexicap fund: 20 K
3. Kotak Emerging Opportunities Fund: 20 K
4. Mirage Asset midcap fund: 10 K
5. Nippon India Small cap fund: 10 K

Funds recommended are in the top quartile in their category.

Coming to the target of 3 Cr+ in 11 years for the achievement of which you may top-up monthly SIP each year by minimum 7% upto 11 years.

Or

Increase the flat monthly SIP amount to 1.05 L. (Invest in same proportion, as given above, for the enhanced amount)

As you get nearer to your time horizon it is important to transfer gains from equity funds to liquid or ultra short duration debt funds to protect it against market volatility.

Happy Investing!!

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*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.