Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. Planning to buy a new apartment in Baroda of 70 lakhs in 5 years. I have a target net worth to reach of 5CR in 5years.

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.

Ans: It's great to see your interest in starting a SIP at such a young age! Since you're already investing in HDFC Mid Cap Opportunities Fund, let's explore some other SIP options for long-term investment:

Large Cap Funds: Consider investing in large-cap funds, which typically invest in well-established companies with a proven track record. These funds offer stability and steady growth potential over the long term. Look for funds with a consistent performance history and a focus on quality stocks.
Multi-Cap Funds: Multi-cap funds invest across companies of different sizes, offering diversification and flexibility. These funds have the freedom to shift between large-cap, mid-cap, and small-cap stocks based on market conditions. Choose a fund with a seasoned fund manager and a disciplined investment approach.
Index Funds: Index funds replicate the performance of a specific market index, such as the Nifty 50 or Sensex. These funds have lower expense ratios and provide broad market exposure. Investing in index funds can be a cost-effective way to participate in the equity markets over the long term.
Balanced Advantage Funds: Balanced advantage funds dynamically allocate between equity and debt based on market valuations. These funds aim to provide stable returns with lower volatility. Consider investing in a balanced advantage fund for a balanced risk-return profile.
Global Funds: Global funds invest in international equities, providing exposure to global markets and diversification beyond domestic stocks. These funds offer the opportunity to benefit from global economic growth and innovation. Choose a global fund with a focus on quality companies and strong fundamentals.
Before selecting a SIP, assess your risk tolerance, investment goals, and time horizon. Consult with a Certified Financial Planner or investment advisor to choose a SIP that aligns with your financial objectives and risk profile. By starting early and investing consistently, you're laying the foundation for long-term wealth creation and financial security. Keep up the good work, and best of luck with your investment journey!