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Ramalingam Kalirajan |7367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by J on May 09, 2024Hindi

Dear Sir,Myself and my wife investing in mutual fund for long term for about Rs 38000 pm comprise Mire asset emerging bluechip 5000;Bhandan Flexi cap 5000; BSL Tax advantage fund 5000:ICICI discovery fund 5000: Nippon India small cap 10000; Nippon India growth 8000 Everything on growth option. Pls suggest for making 2crore for another 10year.Also Any chnages required in the above investment also pls suggest

Ans: It's commendable that you and your wife are investing diligently for the long term to achieve your financial goals. Let's create a plan to help you reach your target of ?2 crores in another 10 years while also evaluating your existing investments:
Goal of ?2 Crores in 10 Years:
1. Monthly Contribution: To achieve ?2 crores in 10 years, you'll need to increase your monthly SIP contributions. Given your current investments and timeframe, consider gradually increasing your SIP amount over time.
2. Asset Allocation: Maintain a diversified portfolio across different asset classes to balance risk and return potential. Allocate investments across large-cap, mid-cap, and small-cap funds to optimize growth opportunities.
3. Review and Rebalance: Regularly review your investment portfolio and rebalance as needed to ensure it remains aligned with your financial goals and risk tolerance.
Evaluating Existing Investments:
1. Mirae Asset Emerging Bluechip: This fund has a solid track record and focuses on mid-cap and large-cap stocks. Consider continuing your SIP in this fund as it aligns with your long-term goals.
2. Bandhan Flexi Cap: Evaluate the performance and risk profile of this fund compared to other flexi-cap options available in the market. Consider diversifying into other flexi-cap funds for added exposure.
3. BSL Tax Advantage Fund: With a focus on tax-saving and growth, this fund offers benefits under Section 80C of the Income Tax Act. Ensure it aligns with your tax planning goals and consider continuing your SIP if suitable.
4. ICICI Discovery Fund: Assess the performance and risk profile of this fund compared to other options in the discovery category. Consider reallocating to funds with stronger growth potential and alignment with your investment strategy.
5. Nippon India Small Cap and Growth Funds: These funds offer exposure to small-cap and growth-oriented stocks. Given the higher risk associated with small-cap funds, ensure they align with your risk tolerance and investment horizon.
Suggestions for Improvement:
1. Increased SIP Contributions: Gradually increase your monthly SIP contributions to accelerate wealth accumulation and achieve your target of ?2 crores in 10 years.
2. Diversification: Consider diversifying your portfolio by adding funds from different fund houses and categories to spread risk and optimize returns.
3. Regular Review: Periodically review your investment portfolio and make adjustments as needed to stay on track towards your financial goals.
Conclusion:
By increasing your SIP contributions, maintaining a diversified portfolio, and periodically reviewing your investments, you can work towards achieving your target of ?2 crores in 10 years. Seek guidance from a Certified Financial Planner to optimize your investment strategy and ensure it aligns with your financial objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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