Hi Sir,Myself Sujit Singha,I am 42yrs Old,my financial goal plan with MF to achieve 40/50lcs in next 15/20yrs ...so far my existing SIP for last 5yrs are :No-1) IDFC Emerging Business Fund Reg(G) =Rs.1000/- No-2)Axis Bluechip Fund (G)=Rs.3000/- No-3)Axis Smallcap Fund Reg(G)=Rs2000/- No-4) DSP Mid Cap Fund Reg(G) =Rs.2000/- No-5) Axis FlexiCap Fund (G)=Rs.1500/- No-6) Kotak Emerging Equity Fund(G) =Rs.2000/- so any suggestion to switch or add funds and if any shares which i can hold for long time,plz advice since current market scenario high inflation ahead...which economic boost will impact ?

Ans: Hi Vinay Rao. Looking at your current sip allocation, I would suggest reshuffle and rebalance your portfolio. Introduce some new schemes like Quant, PGIM AMC in place of Kotak Flexi cap fund. Try to reduce your AMC allocation which may have overlapping effect in holdings. Axis Bluechip fund can be reconsidered.

Ans: You have a total of Rs 11,500 of SIPs per month. You will easily reach your target of Rs 50 Lakhs even in 15 years with the portfolio you are following, even after not taking into account the amount you have accumulated in the past 5 years!
And magic will happen if you increase your SIP by 10% each year as your salary increases.

However, remember that your portfolio is very aggressive, 100% equity oriented and would need a review and if required, rebalancing once a year.

My recommendations on your funds:-

1. Axis Bluechip Fund – Large Cap – Continue
2. Axis Flexicap Fund – Flexi Cap – Poor performance. Switch to Parag Parikh Flexi Cap Fund
3. Kotak Emerging Equity Fund – Mid Cap - Continue
4. DSP Mid Cap Fund – Mid Cap – Poor performance. Switch to PGIM India Midcap Opp Fund
5. IDFC Emerging Business – Small Cap - A very new fund with hardly any track record. Switch instead to SBI Small Cap Fund
6. Axis Small Cap Fund – Small Cap – Continue

Ans: It's great to see your proactive approach towards long-term financial planning. Given your income, expenses, and existing investments, here are some suggestions to help you achieve your target net worth of 5 crores in 5 years:

Increase SIP Contributions: Consider increasing your SIP contributions to align with your ambitious goal. You may also explore the option of stepping up SIP amounts annually to accelerate wealth accumulation.
Diversification: While your current SIPs are well-diversified, you can further enhance diversification by adding funds from different categories such as large-cap, mid-cap, and multi-cap funds. This helps spread risk and capture opportunities across market segments.
Explore Tax-Saving Investments: Utilize tax-saving investment avenues such as Equity Linked Savings Schemes (ELSS) to optimize tax benefits while building wealth. ELSS funds offer the twin benefits of tax savings under Section 80C of the Income Tax Act and potential capital appreciation.
Regular Review and Rebalancing: Regularly review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Consider rebalancing your portfolio periodically to maintain the desired asset allocation mix.
Emergency Fund: Ensure you have an adequate emergency fund set aside in a liquid instrument like a savings account or liquid mutual fund to cover unforeseen expenses without disrupting your investment portfolio.
Seek Professional Advice: Given the ambitious nature of your financial goal, consider consulting with a certified financial planner who can provide personalized advice tailored to your specific circumstances and objectives.
Remember, achieving a significant target like 5 crores in 5 years requires disciplined savings, strategic investing, and periodic reassessment of your financial plan. Stay focused on your long-term objectives and remain patient during market fluctuations.

Ans: It is good that you are investing a good amount per month with a saving/investment ratio of 50%. To reach your goal with current accumulated portfolio, available investment surplus (Rs 15 Lakh) and current SIPs, you need to make additional SIPs of 4.71 Lakh per month, (assuming 12% annualised return). Obviously, this is not possible given current income and cash flows. Going with the current status of investment, you will be able to accumulate 1.18 Cr by the end of 5th Year.

Your stated scenario of accumulating Rs 5 Cr is definitely very difficult to achieve, but here we will suggest a practical and logical approach toward investment. Do the step up SIPs, which means you should increase the investible surplus (SIPs) every year as your income grows say 10%. With this, you should be able to accumulate approx Rs 1.29 Cr (Assuming 12% ROI). This will reduce the deficit required. Apart from this any windfall amounts received at any time should be invested towards facilitating the goal.

Currently, your SIPs are concentrated in 2 funds which is not good. You should work on diversifying the monthly investment wisely among different categories and sectors, based on your goal requirements.