My name is Vipul and I am 39 years old. Looking to build a corpus of 5-6 crores in next 10 years.

I am currently investing ₹77,000 monthly in following schemes. Please suggest if this portfolio seems in line with market conditions also I am looking for investment horizon of 10 years. Also please suggest more scheme/s for ₹23,000.

1. SBI Magnum Medium Duration Fund (15,000)
2. SBI Focused Equity Fund (10,000)
3. Kotak Equity Opportunity Fund (10,000)
4. Mirae Asset Focused Fund (10,000)
5. UTI Flexi Cap (5,000)
6. SBI Small Cap (5,000)
7. UTI Hybrid Equity (2,500)
8. UTI Transportation and Logistics (2,500)
9. SBI Retirement Benefit Fund (3,000)
10. LIC MF Banking and PSU Debt Fund (15,000).

Appreciate your guidance.

Ans: Continue with 2 , 3, 4, 5, 9 & 10

Ans: Hello Metesh and thanks for writing to me.

Assuming the current portfolio of Rs.72 Lakh compounds at 13% per annum, the future value of the current investment is Rs.3.1 Crore after 12 years.

To then create a corpus of Rs.6.9 Crore after 12 years, you need to invest Rs.1.4 Lakh every month with annual step ups of 10% to create your goal corpus of Rs. 10 Crore after 12 years.

Please share your risk preferences to evaluate suitable schemes.

Ans: Hello Value Investor. I can see over diversification with your current investments with sip amount. I would suggest to concise your mf investments and reshuffle the portfolio. Additionally, reconsider Aditya Birla Sun Life Tax Relief 96 Fund , Axis Long Term Equity Fund and SBI Focused Equity Fund for your portfolio. You can achieve your target till retirement with your current sip amount.

Ans: Assuming 10-12% return from equity funds will be reasonable.

Ans: It's impressive to see your proactive approach towards building wealth and securing your financial future. With a well-diversified portfolio and a systematic investment plan in place, you're on the right track to achieve your goal of reaching a corpus of 5 crore by the age of 40.

Your current investment mix demonstrates a balanced approach, encompassing various asset classes like mutual funds, fixed deposits, PPF, gold, and stocks, both domestic and international. Diversification is key to managing risk and maximizing returns over the long term.

Continuing with your SIPs, PPF contributions, and sovereign gold investments will further strengthen your portfolio's foundation. SIPs in equity mutual funds provide exposure to the equity market, offering the potential for higher returns over time. PPF and sovereign gold investments offer stability and act as a hedge against market volatility.

Your strategy of investing in Nifty 50 ETF during market downturns is commendable as it allows you to capitalize on market opportunities and accumulate units at lower prices, potentially enhancing your long-term returns.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.

Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.

Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.



Regularly review your portfolio's performance and rebalance as needed to ensure alignment with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner (CFP) to fine-tune your investment strategy and address any specific concerns or objectives you may have.

Stay disciplined with your savings and investment approach, and continue to monitor market trends and economic indicators. With patience, perseverance, and prudent financial management, you're well-positioned to achieve your target corpus by the age of 40.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in