Myself Vishal Choubey nd My wife shanti age 39 both. HaHaving 5 houses Rented(10000/-) 2bhk(30L) HALOL, Rented(10500/-) 2BHK BHIWADI (45L), Rented(7000/-)Bhk (45 Lakh) Jamshedpur, Self Living 3BHK(45Lakh) Jamshedpur , One 2 floor house Jamshedpur Rented 27k. Home Loan of 13.5Lakh is due for one house. 1 CR term insurance for both of us in case something happens. An lic of 6 Lac going to mature 2026. Till 31st March 2024 PPF Vishal (10L)+ 10(L) shanti. Ujjivan bank 9k share @ 21rs Mix share 2Lac MF investment 3 Lac in Edelweiss greater China fund Axis China fund current vale 5.2 Lakh Nippon Taiwan 49 k sip till date investment 7.37 Lakh market value 9.53 lakh, 5k sip in elss Idfc tax advantages fund investment of 70k is now 2.6 Lakh, Many fund got doubled in last 3-4 years Approx 50 lakh MF portfolio. 14 Lakh FD wish to invest in MF globally, buy on dip strategy. A land parcel of of 1 acre approx 35 Lakh. All the assets are created in last 10yrs. Wish to sell one apartment and invest into China fund your advise required? By profession I am a PVC flex material trader, my wife is training centre owner. Having two son 4 yrs and 2 yrs old. Want to create a monthly income of 2 Lakh monthly including rent. And a portfolio of 10 Crore in next 5 years. Want to start 80-90 k sip in MF but not in Indian market. YOUR ADVISE REQUIRED? OUR MONTHLY INCOME 1.5lakh for each. Kindly your advise

Ans: Vishal and Shanti, it's evident you've diligently built a diversified portfolio over the past decade, and you're now looking to fine-tune it to meet your future financial goals. Let's break down your situation and devise a strategic plan to achieve your objectives.

Assessment of Current Portfolio:

You have a robust real estate portfolio comprising five rental properties and a self-occupied residence. However, you also have a significant exposure to the Chinese market through mutual funds. While these investments have performed well historically, it's crucial to acknowledge the higher risk associated with international investments.

Your mutual fund portfolio, particularly the investments in Edelweiss Greater China Fund and Axis China Fund, has seen substantial growth. However, it's important to regularly review your portfolio's performance and adjust your investments as needed to mitigate risks and seize opportunities.

Planning for the Future:

Selling Apartment and Investing in China Fund: Selling one of your properties to invest in a China-focused fund could further diversify your portfolio. However, it's essential to consider the implications of concentrating your investments further in the Chinese market, especially given its volatility and geopolitical risks. Diversification across asset classes and regions is key to managing risk effectively.

Monthly Income and Wealth Creation Goals: Your target of generating a monthly income of 2 lakh rupees, including rental income, is ambitious but achievable with a strategic approach. Considering your current income streams and investments, it's feasible to gradually increase your SIP contributions to meet this target. However, it's essential to assess your risk tolerance and ensure that your investment strategy aligns with your long-term goals.

Investment Strategy: Given your desire to invest globally and your preference for a buy-on-dip strategy, you may consider exploring opportunities in international mutual funds or exchange-traded funds (ETFs) that offer exposure to diverse markets. However, it's crucial to conduct thorough research and consult with a financial advisor to select funds that align with your risk profile and investment objectives.

Recommendations:

Diversification: While international investments can offer growth opportunities, ensure that they complement your existing portfolio rather than increasing concentration risk. Consider diversifying across regions and asset classes to mitigate risk and enhance long-term returns.

Regular Portfolio Review: Continuously monitor the performance of your investments and make adjustments as needed to stay aligned with your financial goals. Regular portfolio reviews with a Certified Financial Planner can help identify opportunities for optimization and risk management.

Risk Management: Given the dynamic nature of financial markets, it's crucial to prioritize risk management and adopt a disciplined approach to investing. Avoid chasing short-term gains and focus on building a resilient portfolio that can withstand market volatility.

In conclusion, while your current portfolio reflects your proactive approach to wealth creation, it's essential to reassess your investment strategy periodically and make informed decisions to achieve your long-term financial objectives. By diversifying your investments, prioritizing risk management, and staying disciplined, you can work towards building a robust financial foundation for your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in