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Sanjeev

Sanjeev Govila  |282 Answers  |Ask -

Financial Planner - Answered on Sep 20, 2023

Shrikanth Question by Shrikanth on Aug 12, 2023Translate
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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. I have a target net worth to reach of 5CR in 5years. I have 16 lakhs MF portfolio, and my running MF sip are 35k in quant active, 30k in parag parikh flexi cap,6k in DSP Nifty 50 equal wieght Index fund and 5k in nippon small cap.

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.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Omkeshwar

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I am 41 years old and work in a private sector company. I will retire at the age of 58 years. I have been making SIP investments as listed below. My object is long term fund accumulation. In my family I have parents, my wife and two kids (12 and 6 years). Please guide for any further addition in SIPs upto Rs 8K to Rs 10K. Also advise if I should stop any of the SIPs. Mutual Fund - Through monthly SIP SIP Per Month Number of yeas invested 1. SBI Small Cap Fund Regular Growth Rs 2,500 2 2. SBI Focused Equity Fund Direct Growth Rs 1,500 2 3. NIPPON INDIA VALUE FUND -- GROWTH PLAN  Rs 2,000 7 4. NIPPON INDIA LARGE CAP FUND -- GROWTH PLAN  Rs 2,250 4 5. ICICI Prudential Value Discovery Fund -- Growth Rs 2,000 2 6. HDFC Top 100 Fund -- Growth Rs 2,500 9 7. HDFC TaxSaver -- Growth Rs 2,000 9 8. HDFC Mid-Cap Opportunities Fund -- Growth Rs 1,500 5 9. HDFC Flexi Cap Fund Growth (Erstwhile HDFC Equity Fund) Rs 2,000 6 10. Franklin India Smaller Companies Fund -- Growth Rs 2,000 4 11. DSP Mid Cap Fund, Reg -- G Rs 2,000 5 12. DSP Focus Fund, Reg -- G Rs 2,000 2 13. DSP Equity Opportunities, Reg -- G Rs 2,000 2 14. Aditya Birla Sun Life Tax Relief '96 Fund (ELSS U/S 80C of IT ACT) -- Growth, Regular Plan Rs 2,000 4 15. Aditya Birla Sun Life Frontline Equity Fund -- Growth, Regular Plan Rs 2,000 1 16. Aditya Birla Sun Life Equity Advantage Fund - Growth, Regular Plan Rs 2,000 4 I have also made one time investment in the funds listed below. Please guide for any switching. I also want to invest an additional Rs 80K to Rs 1 lakh. Please guide. Mutual Fund One Time investment Investment HDFC Low Duration Fund -- Growth Rs 50,245 HDFC Mid-Cap Opportunities Fund - Direct Plan -- Growth Option Rs 22,500 HDFC Small Cap Fund -- Regular Plan, Growth Rs 25,000 HDFC Housing Opportunities Fund -- Direct Plan, Growth Option Rs 20,000 Aditya Birla Sun Life Resurgent India Fund Series 6 -- Direct, Growth Rs 20,000 Aditya Birla Sun Life Low Duration Fund -- Regular Plan, Growth (formerly known as Aditya Birla Sun Life Cash Manager) Rs 79,578 Aditya Birla Sun Life Frontline Equity Fund -- Direct Plan, Growth Rs 44,000 ICICI Prudential Bluechip Fund -- Growth Rs 25,000 ICICI Prudential Value Fund Series 19 -- Direct Plan, Cumulative Rs 20,000 L&T Midcap Fund -- Growth Rs 25,000 SBI Focused Equity Fund Regular -- Growth Rs 25,000
Ans: Your portfolio has too many funds, it's over-diversified.

Lumpsums can be continued.

In SIPs, you may continue with 1, 2, 5, 8 and 11.

 

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Sanjeev

Sanjeev Govila  |282 Answers  |Ask -

Financial Planner - Answered on Jul 23, 2023

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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