Dear Sir, I am a NRI (46 years) just return and settling in India, so far my finance portfolio is cash in hand 3.5CR and asset of 4cr on land and agriculture which i know intention to sell as of now and i too start build house as to get passive income from our saving apart above, now my problem is currently we (my kids 10standard and 7 standard my wife) staying rental appartments and i have issue as i intent buy apartment and remaining put in FD but my wife refusing and makes so much decision with other people opnion to put all 3.5cr on land on industrial area...and the thing is i am so confused as she dont know anything last 20 years but once we in india all kind of thoughts she have and i cant able to make right decision and for info i am almost semi retire due to my health issue and i dont any insurance coverage , so please give guide line to follow

Ans: Vishal and Shanti, it's evident you've diligently built a diversified portfolio over the past decade, and you're now looking to fine-tune it to meet your future financial goals. Let's break down your situation and devise a strategic plan to achieve your objectives.

Assessment of Current Portfolio:

You have a robust real estate portfolio comprising five rental properties and a self-occupied residence. However, you also have a significant exposure to the Chinese market through mutual funds. While these investments have performed well historically, it's crucial to acknowledge the higher risk associated with international investments.

Your mutual fund portfolio, particularly the investments in Edelweiss Greater China Fund and Axis China Fund, has seen substantial growth. However, it's important to regularly review your portfolio's performance and adjust your investments as needed to mitigate risks and seize opportunities.

Planning for the Future:

Selling Apartment and Investing in China Fund: Selling one of your properties to invest in a China-focused fund could further diversify your portfolio. However, it's essential to consider the implications of concentrating your investments further in the Chinese market, especially given its volatility and geopolitical risks. Diversification across asset classes and regions is key to managing risk effectively.

Monthly Income and Wealth Creation Goals: Your target of generating a monthly income of 2 lakh rupees, including rental income, is ambitious but achievable with a strategic approach. Considering your current income streams and investments, it's feasible to gradually increase your SIP contributions to meet this target. However, it's essential to assess your risk tolerance and ensure that your investment strategy aligns with your long-term goals.

Investment Strategy: Given your desire to invest globally and your preference for a buy-on-dip strategy, you may consider exploring opportunities in international mutual funds or exchange-traded funds (ETFs) that offer exposure to diverse markets. However, it's crucial to conduct thorough research and consult with a financial advisor to select funds that align with your risk profile and investment objectives.

Recommendations:

Diversification: While international investments can offer growth opportunities, ensure that they complement your existing portfolio rather than increasing concentration risk. Consider diversifying across regions and asset classes to mitigate risk and enhance long-term returns.

Regular Portfolio Review: Continuously monitor the performance of your investments and make adjustments as needed to stay aligned with your financial goals. Regular portfolio reviews with a Certified Financial Planner can help identify opportunities for optimization and risk management.

Risk Management: Given the dynamic nature of financial markets, it's crucial to prioritize risk management and adopt a disciplined approach to investing. Avoid chasing short-term gains and focus on building a resilient portfolio that can withstand market volatility.

In conclusion, while your current portfolio reflects your proactive approach to wealth creation, it's essential to reassess your investment strategy periodically and make informed decisions to achieve your long-term financial objectives. By diversifying your investments, prioritizing risk management, and staying disciplined, you can work towards building a robust financial foundation for your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It sounds like you're juggling a lot, but you've got a solid foundation laid out. It's admirable how you're balancing your responsibilities towards your family's present needs and future goals. Let's address your concerns and aspirations one by one.

1. Car Purchase Consideration:
You're eyeing a new car, a shiny symbol of comfort and convenience. However, before diving in, let's assess if it aligns with your current financial trajectory:

Timing and Need:
Do you have an immediate need for the car, or is it more of a desire?
Can you postpone the purchase until you've accumulated a down payment or have more breathing room in your budget?
2. Reviewing Savings and Investments:
Your portfolio is diverse, spanning various assets from real estate to mutual funds. Let's evaluate if each piece is still working optimally for you:

Portfolio Alignment:
Are all your investments aligned with your long-term goals and risk tolerance?
Can you streamline or consolidate any holdings to reduce costs or enhance performance?
3. Exploring Additional Income Streams:
You're eager to bolster your financial stability by exploring secondary income sources. Let's brainstorm some viable options:

Leveraging Skills and Passions:
What skills or hobbies do you possess that could be monetized?
Are there freelancing opportunities or consulting gigs in your field of expertise?
4. Planning for Financial Freedom:
Your aspiration to achieve financial independence within a decade is ambitious yet attainable. Let's outline a roadmap to realize this vision:

Defining Financial Freedom:
What does financial freedom mean to you personally?
Is it early retirement, pursuing passion projects, or having more flexibility in your lifestyle?
Strategic Steps:
How can you increase your savings rate to accelerate progress towards your goals?
Are there opportunities to optimize investments or explore alternative income streams?
5. Optimizing Current Financial Plan:
Let's explore potential adjustments to your existing financial strategy to enhance its effectiveness:

Reallocating Resources:
Can you reallocate funds towards higher-performing investments or areas with greater potential?
Are there opportunities to automate savings or investment contributions for greater consistency?
Conclusion:
Your commitment to securing your family's financial future is commendable. By carefully considering each aspect of your financial situation, from major purchases to investment strategies, you're laying a strong foundation for long-term success. Remember, financial planning is a journey, and with patience, diligence, and the guidance of a Certified Financial Planner, you're well-positioned to achieve the freedom and security you desire.

Ans: It's wonderful to see your proactive approach towards financial planning, especially at a young age. Congratulations on your investments and upcoming milestone of starting a family!

Having a stable base with a home and a car is a significant advantage, allowing you to focus more on building your savings and investments.

Investing in ELSS (Equity Linked Savings Scheme) is a smart move, considering its potential for wealth accumulation over the long term and tax-saving benefits under Section 80C of the Income Tax Act. However, it's essential to diversify your portfolio to spread risk.

Given your goal of accumulating 3 crores by the age of 55, you have a considerable time horizon ahead. It's advisable to adopt a disciplined approach towards saving and investing regularly. Consider allocating your savings across different asset classes like equities, debt, and possibly real estate or other alternative investments, depending on your risk appetite and financial goals.

As you're starting a family soon, it's crucial to ensure adequate financial protection for your loved ones. Look into term insurance plans to provide financial security to your family in case of any unfortunate event.

Moreover, since you're relatively new to equity trading and have experienced some losses, it's essential to approach it with caution. Consider focusing more on long-term investments like mutual funds rather than speculative trading, especially considering your long-term financial goals.

As your income grows, aim to increase your savings and investments proportionately. Regularly review your financial plan and make adjustments as needed to stay on track towards achieving your goals.

Remember, patience, consistency, and discipline are key to building wealth over the long term. Best wishes for your journey towards financial independence and starting a family!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in