A portfolio of 10 Crore in next 5 years. Want to start 80-90 k sip in MF but not in Indian market. YOUR ADVISE REQUIRED? Me and my wife jointly monthly income three Lakh per month. By profession I am a PVC flex material trader, my wife is training centre owner. Having two cute nd naughty son 4 yrs and 2 yrs old. Myself Vishal Choubey nd My wife shanti both aged 39 years. Having 5 houses Rental income arround 55k per month collectively. 1 CR term insurance for both of us in case something happens. An lic of 6 Lac going to mature 2026. Till 31st March 2024 PPF Vishal (10L)+ 10(L) shanti. Ujjivan bank 9k share @ 21rs, Mix share 2Lac. Edelweiss greater China 3.1Lacs, Axis China fund 5.2 Lakh, An sip of 49000/- in Nippon Taiwan current investment 7.37 Lakh market value 9.53 lakh, 3k sip in icici tax fund. Idfc tax fund an investment of 70k is now 2.6 Lakh, Many fund got doubled in last 3-4 years Approx 50 lakh MF portfolio. FD 14 Lakh. A land parcel of 1 acre approx 40 Lakh. All the assets are created in last 10yrs. Wish to sell one apartment and invest into China fund your advise required?

Ans: It's impressive how you've diversified your investments across real estate, mutual funds, PPF, and shares.

Consider selling one apartment to further diversify into global mutual funds, aligning with your buy-on-dip strategy.

Reevaluate your MF portfolio regularly, ensuring it remains aligned with your financial goals and risk tolerance.

Continue maximizing tax-saving opportunities like PPF and tax-saving mutual funds.

Review your real estate holdings periodically and assess if any adjustments are needed based on market conditions.

Maintain a balance between growth and stability in your investment portfolio to mitigate risks effectively.

Consult with a Certified Financial Planner to tailor your investment strategy according to your specific financial goals and aspirations.

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: Hello Vishal and Shanti,

It's wonderful to see that you've built a substantial portfolio and are actively planning for your financial future. Let's address your queries and provide some advice:

Investment in International Markets:
Diversifying your investment portfolio by investing in international markets is a prudent strategy to mitigate risks and capture global growth opportunities.
Given your intention to start SIPs in MFs outside the Indian market, consider researching and selecting funds that focus on regions or countries with strong economic growth prospects, such as the US, Europe, or emerging markets like China.
Look for mutual funds or exchange-traded funds (ETFs) that have a track record of consistent performance and are managed by reputable fund houses with expertise in international markets.
Selling Apartment and Investing in China Fund:
Selling one of your apartments to invest in a China-focused fund can be a strategic move, provided you have thoroughly evaluated the risks and potential returns associated with investing in the Chinese market.
Consider factors such as geopolitical tensions, regulatory changes, and economic stability when making investment decisions in international markets.
Consult with a financial advisor to assess the suitability of this investment strategy based on your overall financial goals, risk tolerance, and investment horizon.
Reviewing Existing Investments:
Periodically review your existing investments, including MFs, shares, and other assets, to ensure they remain aligned with your financial objectives and risk profile.
Take advantage of opportunities to rebalance your portfolio and reallocate funds to assets that offer better growth prospects or align with your evolving financial goals.
Risk Management and Insurance:
Continue prioritizing risk management by maintaining adequate insurance coverage, such as your term insurance policies, to protect your family's financial well-being in case of unforeseen events.
Regularly assess your insurance needs and consider updating your coverage as your financial circumstances change over time.
Long-Term Financial Planning:
Given your joint monthly income, rental income from properties, and diverse investment portfolio, continue focusing on long-term financial planning to achieve your goal of building a portfolio worth 10 Crore in the next 5 years.
Monitor your progress towards this goal regularly and make adjustments as necessary to stay on track.
Overall, your proactive approach to financial planning and willingness to explore international investment opportunities bodes well for your financial future. Continue seeking expert advice and stay disciplined in executing your investment strategies.

Ans: It's evident that you've diligently built a diversified portfolio over the past decade, encompassing various asset classes and investment vehicles. Now, aiming to expand your investment horizon beyond the Indian market through SIPs in mutual funds indicates a forward-thinking approach.

Assessing Current Financial Position:

Your joint monthly income of Rs. 3 lakh, along with rental income from five houses, provides a stable foundation for further investment endeavors. Additionally, having term insurance coverage of Rs. 1 crore ensures financial security for your family in unforeseen circumstances.

Evaluating Investment Portfolio:

Your existing investment portfolio comprises a mix of equity funds, shares, PPF, FDs, and real estate. Notably, your investments in international funds such as Nippon Taiwan and Axis China Fund reflect a willingness to diversify geographically.

Considering Selling Apartment to Invest in China Fund:

Selling one apartment to invest in a China-focused fund is a strategic decision that warrants careful consideration. Before proceeding, assess the potential impact on your overall asset allocation, risk profile, and liquidity needs.

Benefits of Investing in International Markets:

Investing in international markets offers diversification benefits, reducing portfolio risk associated with domestic market fluctuations. Exposure to rapidly growing economies like China can potentially enhance portfolio returns over the long term.

Risks and Considerations:

However, investing in international markets entails currency risk, geopolitical factors, and regulatory uncertainties specific to the target country. Conduct thorough research and consult with a Certified Financial Planner to evaluate these risks and determine suitability.

SIP Allocation and Fund Selection:

Allocating Rs. 80-90,000 monthly SIP towards international funds aligns with your goal of expanding investment horizons. Consider diversified international funds with exposure to developed and emerging markets, ensuring a balanced risk-return profile.

Review and Rebalance:

Regularly review your investment portfolio to ensure alignment with financial goals and risk tolerance. Rebalance asset allocation periodically to maintain diversification and optimize returns.

Conclusion:

Your proactive approach towards financial planning and willingness to explore international investment opportunities is commendable. Before selling the apartment, assess the potential impact on your overall portfolio and consult with a Certified Financial Planner for personalized advice tailored to your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in