I need a monthly income of 1 lakh in 10 years and want to build sufficient corpus for this. My current corpus is 15 lakh. I am currently investing as per below:

Axis long term 5000

Axis blue chip 5000

Sbi small cap 5000

UTI NIfty index 5000

Mirae emerging bluechip 3000

Tata technology fund 5000

Pgim multicap 2000

Quant active fund 2000

Franklin india us opportunities 1000

Please advise if these funds are good or some changes required. Please also share names of other good funds where I can additionally invest. Also there is less exposure in international funds, gold funds and midcap. Please also advise on it.

Ans: Continue with 2 , 3, 4, 5, 9 & 10

Ans: You may consider below funds:

• Parag Parikh Flexi Cap Fund- Growth
• Samco Flexi Cap Fund – Growth
• UTI MNC Fund - Growth Plan
• HDFC Index Fund - Sensex Plan  - Growth

Ans: I will not be able to suggest any fund or investment avenue as the provided information is not sufficient to ascertain the holistic financial view.

For a better future financial planning, there are various factors which are required to be considered such as Risk appetite, current financial situation, upcoming requirements and goals etc. It is advisable to consult a good financial advisor to tailor a strategy specific to your circumstances.

Ans: I commend your goal of building a corpus of 50 lakhs within the next year. It's a challenging but achievable target given your financial situation. Here's a plan to help you reach your goal:

Firstly, let's leverage your existing cash in hand of 10 lakhs. This amount can serve as the foundation for your investment journey.

Next, considering your monthly income of 1.6 lakhs, we can allocate a portion towards systematic investment plans (SIPs) in mutual funds.

SIPs offer the advantage of disciplined investing, allowing you to invest a fixed amount regularly over time, regardless of market fluctuations.

Given your investment horizon of one year, it's crucial to focus on relatively low-risk options to preserve capital while aiming for reasonable returns.

Avoiding direct equity or high-risk investments would be prudent, as they may subject your capital to significant market volatility and potential losses.

Instead, consider investing in debt mutual funds or balanced funds, which offer a balance of safety and potential for growth.

While actively managed funds may have slightly higher expense ratios compared to index funds, they offer the advantage of professional fund management and potential outperformance in volatile markets.

Regularly review your investment portfolio and make adjustments as needed to stay on track towards your goal.

Remember, consistency and patience are key to achieving your financial objectives. Stay committed to your investment plan, and you'll be closer to building the corpus you desire.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Assessing Your Investment Plan

Lumpsum Investment: You plan to invest Rs 3 lakhs as a lumpsum.

Monthly SIP: You also want to invest Rs 10,000 monthly.

This combination of a lumpsum and SIP is a good strategy.

Expected Returns

Equity Funds: Typically, equity funds can give an average return of 12-15% annually.

Diversification: To reduce risk, diversify into different types of funds.

Advantages of Actively Managed Funds

Professional Management: Managed by experienced professionals.

Better Adaptability: Adjust investments based on market conditions.

Higher Returns Potential: Skilled managers aim to outperform the market.

Disadvantages of Index Funds

Limited Flexibility: Can't adapt quickly to market changes.

Market Fluctuations: More exposed to volatility.

Potential Lower Returns: May underperform actively managed funds.

Why Regular Funds Over Direct Funds

Expert Advice: Certified Financial Planners (CFPs) provide tailored advice.

Holistic Planning: Consider your overall financial situation.

Ongoing Support: Regular adjustments to your investment strategy.

Better Resources: Access to extensive research and tools.

Calculating the Corpus

Let's assess if your plan can reach your goal. With Rs 3 lakhs lumpsum and Rs 10,000 monthly SIP, you can potentially reach Rs 1 crore in 10 years.

Investment Strategy

Start with Lumpsum: Invest Rs 3 lakhs in a diversified equity fund.

Monthly SIP: Invest Rs 10,000 in a mix of equity and hybrid funds.

Review Regularly: Monitor your investments and adjust as needed.

Stay Invested: Long-term investments tend to yield better returns.

Important Considerations

Risk Tolerance: Equity investments carry risk. Be prepared for market fluctuations.

Time Horizon: Staying invested for the full 10 years is crucial.

Professional Advice: Consult a Certified Financial Planner for personalized guidance.

Final Insights

Ayan, your plan to invest Rs 3 lakhs as a lumpsum and Rs 10,000 monthly SIP is a strong start. With disciplined investing and proper fund selection, you can potentially reach your Rs 1 crore goal in 10 years. Diversify your investments, stay invested for the long term, and consult a Certified Financial Planner for tailored advice.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in