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Ramalingam

Ramalingam Kalirajan  |4647 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Sangayya Question by Sangayya on Apr 14, 2024Hindi
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Hi Sir Sangayya hear from Karnataka my age is 43 from last 3 years I started my SIP details r as below 1 ELSS - 5 sips each 1k 2. Large & mid cap fund - 3 sips 1k each 3. Thematic fund - Franklin India opp - 5k 4. Multi asset allocator - Tata 5k 5.Flexi cap fund - 2 Sips 1k each 6. Dynamic Asset - Edelweiss balanced Adv fund 1k 7. Small cap - Nippon India 1k Total monthly 22k is my investment kindly suggest I want to build my corpus 1cr in another 10 year & how much capital I have to invest to achieve my Target

Ans: Based on your current investments of Rs 22,000 monthly, achieving a Rs 1 crore corpus in 10 years might require additional investment. Here's a simplified calculation assuming constant monthly investment and average return:

Required Additional Investment = (Target Corpus - (Current Investment * Years)) / Years

You can use an online investment calculator to get a more accurate estimate considering factors like specific return rates.

Consulting a qualified financial advisor can help assess your portfolio and suggest adjustments to reach your goals.
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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Ramalingam

Ramalingam Kalirajan  |4647 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Hi Sir Sangayya hear from Karnataka my age is 43 from last 3 years I started my SIP details r as below 1 ELSS - 5 sips each 1k 2. Large & mid cap fund - 3 sips 1k each 3. Thematic fund - Franklin India opp - 5k 4. Multi asset allocator - Tata 5k 5.Flexi cap fund - 2 Sips 1k each 6. Dynamic Asset - Edelweiss balanced Adv fund 1k 7. Small cap - Nippon India 1k Total monthly 22k is my investment kindly suggest I want to build my corpus 1cr in another 10 year
Ans: You've made a good start with your SIP investments across various categories. To achieve a corpus of 1 crore in 10 years, you'll need an average annual return of around 12%, considering your current investment of 22k per month.

Here are some suggestions to optimize your portfolio:

ELSS: Great for tax-saving, but remember the lock-in period. Ensure you're comfortable with the fund's performance and risk profile.

Large & Mid-cap: These funds offer a balanced approach. Monitor the performance and consider consolidating into a top-performing fund if necessary.

Thematic Fund: These are more focused and can be riskier. Ensure it aligns with your investment goals and risk tolerance.

Multi-Asset Allocator: Offers diversification across asset classes. A good choice for balanced growth. Ensure the fund's strategy aligns with your goals.

Flexi Cap & Dynamic Asset Allocation: These provide flexibility to invest across market caps and adjust to market conditions. Ensure they complement each other and don't overlap too much.

Small Cap: High growth potential but higher risk. Ensure it fits your risk profile and consider monitoring closely due to higher volatility.

General Recommendations:

Review & Rebalance: Regularly review your portfolio's performance and adjust if necessary. Consider shifting funds to top performers or reallocating based on market conditions.

Risk Assessment: Ensure your portfolio aligns with your risk tolerance and investment horizon.

Costs: Opt for direct plans to reduce costs and improve returns.

Diversification: Ensure your portfolio is well-diversified across asset classes and not overly concentrated in one sector or fund.

Professional Advice: Consider consulting a financial advisor for personalized guidance based on your financial goals and risk profile.

In summary, continue your disciplined approach with SIPs, regularly review and adjust your portfolio, and stay invested for the long term to achieve your goal of 1 crore in 10 years.

..Read more

Ramalingam

Ramalingam Kalirajan  |4647 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Sir Sangayya hear from Karnataka my age is 43 from last 3 years I started my SIP details r as below 1 ELSS - 5 sips each 1k 2. Large & mid cap fund - 3 sips 1k each 3. Thematic fund - Franklin India opp - 5k 4. Multi asset allocator - Tata 5k 5.Flexi cap fund - 2 Sips 1k each 6. Dynamic Asset - Edelweiss balanced Adv fund 1k 7. Small cap - Nippon India 1k Total monthly 22k is my investment kindly suggest I want to build my corpus 1cr in another 10 year & how much I have to invest more to achieve Target
Ans: Hello Sangayya, it's great to see your commitment to building your financial future through SIP investments. Let's break down your goal of reaching a corpus of 1 crore in 10 years and assess your current investment approach:

Review Current Investments: Evaluate the performance of your existing SIPs relative to their benchmarks and peers. This will help you understand if adjustments are needed to optimize your portfolio for growth.
Assess Required Monthly Investment: To reach a corpus of 1 crore in 10 years, you'll need to calculate the required monthly investment based on your expected rate of return. This depends on factors like the type of funds you're investing in and prevailing market conditions.
Consider Increasing SIP Amount: If your current monthly investment of 22k isn't sufficient to reach your goal, you may need to increase your SIP amounts or explore additional investment avenues. A Certified Financial Planner can help you determine the optimal investment strategy based on your risk tolerance and financial goals.
Stay Consistent and Patient: Building a substantial corpus takes time and discipline. Stay committed to your investment plan, continue SIPs regularly, and avoid making emotional decisions based on short-term market fluctuations.
Regular Portfolio Review: Periodically review your portfolio's performance and make adjustments as needed. Rebalancing your investments and exploring new opportunities can help you stay on track towards achieving your financial goals.
Remember, while setting ambitious targets is commendable, it's essential to ensure that your investment strategy is realistic and aligned with your risk tolerance and financial capacity. With careful planning and perseverance, you can work towards building a significant corpus over the next decade.

..Read more

Ramalingam

Ramalingam Kalirajan  |4647 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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I am 54 yrs old & i have currently 3 SIP's 0f 5000 1) Aditya birla SL small cap fund Reg(G) 2) HSBC small cap fund Reg (G) 3) Mirae asset large and midcap fund reg (G) and Fix in MF 250000 each in Kotak flexi cap fund Reg (G) and Mirae asset large cap fund Reg (G) from last 6yrs 3 months. Also My wife SIP is 10000/month in 1) ICICI Pru MidCap F(G) 2) Mahindra Manulife small Cap F Reg (G) 3) Motilal Oswal Large and Mid cap fund Reg(G) 4) Nippon india Multi cap Fund (G) from last 6 months. I want to 1.2 to 1.5 crore in next 5 yrs. How much investment required to achieve the corpus.
Ans: It's commendable that you and your wife have taken proactive steps towards securing your financial future through systematic investment plans (SIPs) and fixed investments in mutual funds. Let's formulate a strategic plan to achieve your desired corpus of 1.2 to 1.5 crores within the next 5 years.

Assessing Current Investments
Evaluation of SIPs:

Analyze the performance of your current SIPs in small-cap, mid-cap, and large-cap funds to ensure they align with your risk appetite and return expectations.
Review the consistency of fund performance, expense ratios, and fund manager expertise to gauge the suitability of these investments for achieving your financial goals.
Fixed Investments in Mutual Funds:

Assess the performance of your fixed investments in flexi-cap and large-cap funds over the past 6 years and 3 months.
Consider the fund's track record, investment style, and portfolio composition to determine their potential to contribute towards your desired corpus.
Review of Wife's SIPs:

Evaluate the suitability of your wife's SIPs in mid-cap, small-cap, large & mid-cap, and multi-cap funds based on their risk-return profile and investment objectives.
Ensure that the chosen funds complement your overall investment strategy and align with your joint financial goals.
Calculating Required Investment
Goal-Based Investment Calculation:

Calculate the required monthly investment amount based on the targeted corpus of 1.2 to 1.5 crores and the remaining investment horizon of 5 years.
Consider factors such as expected rate of return, inflation, and risk tolerance to arrive at a realistic investment target.
Systematic Increase in Investment:

Determine the incremental increase in SIP amounts and fixed investments required to bridge the gap between your current portfolio value and the desired corpus within the specified timeframe.
Ensure that the revised investment plan is feasible and sustainable within your financial capacity.
Adjusting Investment Strategy
Portfolio Rebalancing:

Consider reallocating your existing investments or introducing new funds to diversify your portfolio and optimize returns.
Monitor the performance of your investments regularly and make necessary adjustments to maintain alignment with your financial goals.
Risk Management:

Mitigate risk by diversifying across different asset classes, market capitalizations, and investment styles.
Review your asset allocation periodically to ensure that it reflects changes in market conditions and your evolving risk tolerance.
Conclusion
By conducting a thorough assessment of your current investments and recalibrating your investment strategy to align with your financial goals, you can work towards achieving your target corpus of 1.2 to 1.5 crores within the next 5 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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