Hi Nikunj, I am a 44 year old working professional (IT sector) who wants to build a corpus of 5 crores during retirement. I am currently investing in the following MFs:- 1) Axis Gold Fund- 5000/month 2) Kotak Gold Fund- 5000/month 3) ICICI Prudential Nifty 50 Index Fund- 7,500/month 4) Aditya Birla Sun Life Tax Relief 96 Fund- 1000/month 5) ICICI Prudential Long Term Equity Fund (Tax Saving)- 1000/month 6) Axis Long Term Equity Fund- 1,500/month 7) DSP Tax Saver Fund- 1,500/month 8) DSP Equity & Bond Fund- 6,250/month 9) SBI Equity Hybrid Fund- 6,250/month 10) Canara Robeco Equity Hybrid Fund- 6,250/month 11) Mirae Asset Hybrid Equity Fund- 6,250/month 12) SBI Focused Equity Fund- 7,500/month 13) Axis Small Cap Fund- 7,500/month 14) Aditya Birla Sun Life Corporate Bond Fund- 20,000/month 15) PGIM India Midcap Opportunities Fund- 20,000/month 16) Nippon India (AMC) (Short Term Fund, Gold Savings Fund, Nifty Next 50 Junior BeES FoF, Nifty Midcap 150 Index, Index Fund Nifty 50 Plan)- 10,425 I am not sure if my portfolio is good enough for long term goals, or if I am investing in a lot of redundant schemes. I have a moderately medium risk appetite with focus on maximum corpus build. Please give your opinion and suggest if some changes are required. Thanks much in advance.

Ans: No changes are required.

Ans: Hello Vipul. You have apparently targeted a few AMCs and invested in their schemes despite the fact that the selected schemes are in line with the market. Instead, I suggest limiting AMC diversification as this could have a negative effect on portfolios due to overlapping holdings. Select one scheme per AMC.

A clear vision in allocating Debt, Hybrid, and Equity assets would also be helpful. If you invest 1 lakh as sip, your portfolio is over-diversified, the portfolio needs to be reshuffled and rebalanced.

Assuming your investment time horizon has begun now, since your past investment time horizon is not disclosed. It will also require sip investments of 1.91 lakh monthly to achieve a corpus of 5 crore in 10 years.

Ans: Hi JAYANT RAHUL. No modification is required in terms of MF investment Amount. Your goal will be achieved with your current investments amount in MF. Although the selected schemes are aligned with the market, I would suggest to reconsider Axis Bluechip Fund and introduce mid-cap and flexi-cap funds in your portfolio.

Ans: Dear Friend,
Great to that you are committed in your investments and keen to have your retirement planning query resolved. It's great to see that you're proactively managing your finances. Very few people are managing their own finances. I always recommend my clients to take hold of your finances and do not depend on any other person or advice. Let’s see what kind of corpus you might expect after five years, along with some suggestions for your mutual fund portfolio. Assumed Annual Return 6% Fixed Deposit, Assumed Annual Return:** 7.5% for PPF and Sukanya Scheme. Assumed Annual Return 10% on Mutual Funds. you can expect approximately ?8.45 Crores after 5 years. your investment is highly dependent on Equity related Mutual funds which consider high risk .
Some recommendations, Consolidate Similar Funds, Having too many funds in the same category can lead to overlapping investments and doesn't significantly increase diversification.
Diversify Across Market Caps Ensure you have exposure to large-cap, mid-cap, and small-cap funds for balanced growth. They offer low-cost diversification and track market indices.
Regularly Review Performance of your funds against benchmarks. As you're approaching 50, consider gradually shifting a portion of your investments to less volatile instruments like debt funds or fixed-income securities. Consider Index Funds or ETFs.
Ensure you have an emergency fund covering at least 6 months of expenses. Be mindful of the tax implications of your investments, especially when redeeming or rebalancing. Consult a Financial Advisor
Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
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