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Ramalingam Kalirajan |8068 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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 PRANJIT on Aug 29, 2023Hindi

Hi Namaskar Sir, I m 46 yrs Gov't employee &retirement is on 08/36.i already investing in MF since 2018.My portfolio is as follows All r direct growth fund. 1,PPFS Fund 4000/month 2,Edelweiss midcap fund 2500/ month ( newly started.( Total 12500.invested) 3 Mirae Asset large cap 2500/month (newly started Total 12500.invested. 4 Quant Active fund 2500/month. 5 Pgim flexi cap fund 2500/month. 6 Nippon India small cap fund 2500/month. ( newly started Total 7500 investment 7Sbi small cap fund 3000/month 8 Sbi Magnum midcap fund 2500/month newly started. 9Sbi contra fund 2500/month newly started. 10 Sbi technology fund 2000/ month 11Kotak emerging equity fund 3000/ month 12Hdfc midcap oppurtunities fund 2500/ month newly started total 7500 investment. Sir please look at my portfolio & Advice if needed. My risk appetite is highly aggressive & my investment is 13 yrs to create wealth for children education and also for retirement. My NPS monthly 14018/ month deduction. How much corpus can i accumulate in 13yrs of investment with this portfolio's?

Ans: Your portfolio appears to be heavily concentrated in mid-cap and small-cap funds, indicating a high-risk, aggressive approach. Here are some suggestions for consideration:

Diversification: While high-risk investments can offer potential for higher returns, it's crucial to diversify across different asset classes and fund categories to mitigate risk. Consider adding large-cap or multi-cap funds to balance your portfolio.

Review and Rebalance: Regularly review the performance of your funds and rebalance your portfolio if necessary. If any fund underperforms consistently or doesn't align with your investment strategy, consider replacing it with a better-performing alternative.

Risk Management: Understand the risk associated with mid-cap and small-cap funds and ensure that your overall portfolio risk is balanced according to your risk tolerance and investment horizon.

Long-Term Perspective: Stay committed to your investment plan and maintain a long-term perspective. Over a 13-year horizon, equity investments have the potential to deliver significant returns, but there may be periods of market volatility that require patience and discipline.

Regular Contributions: Continue with your SIP contributions regularly, and consider increasing your investment amount over time as your income grows or allocate additional funds towards your investment portfolio.

Seek Professional Advice: If you're uncertain about your investment strategy or need personalized guidance, consider consulting with a financial advisor who can provide tailored recommendations based on your financial situation and goals.

Regarding the potential corpus accumulation in 13 years, it's challenging to provide an exact figure due to the unpredictable nature of the market. However, with a disciplined approach and assuming reasonable market growth, your portfolio has the potential to accumulate a significant corpus over the long term. Regularly monitor your investments and make adjustments as needed to stay on track towards your financial goals.

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