I read about this service called Ask MF Guru in an article online. I wanted you to please review my existing portfolio & help me design it better to achieve my goals listed below.

I do realise that my portfolio is not diversified amongst asset classes. I want to start investing in Gold (SGB) on a regular basis.

I am 38year old & my risk profile is High for another 10 years.

Please suggest what amendments I should make & how much more I should invest to achieve my targets.

Goals:-
Expenses	Time yrs	Amount
Higher Education for Daughter (she is 2)	15	75,00,000
Marriage of Daughter	23	1,00,00,000
Retirement (Myself)	22	25,00,00,000

My current investments & savings:

	Current Investments	Monthly	Current Value	Remarks
1	Axis Long Term Equity Fund (ELSS) (R.)	5,000	1,53,000	SIP ongoing
	Mirae Assets Tax Saver Fund (ELSS) (R.)	7,500	3,22,000	SIP ongoing
	Quant Active Fund (Flexi Cap) (D.)	5,000	35,000	SIP ongoing
	Axis Small Cap Fund Direct-Growth (D.)	5,000	25,000	SIP ongoing
	Parag Parikh Flexi Cap Fund (D.)	5,000	20,000	SIP ongoing
	PGIM India Flexi Cap Fund (D.)	5,000	24,000	SIP ongoing
	Quant Active Fund (Small Cap) (D.)	5,000	23,000	SIP ongoing
	Axis Flexi Cap Fund (R.)	2,500	88,000	SIP ongoing
	Quant Tax Fund (ELSS) (D.)	3,000	8,000	SIP ongoing
	ICICI Prudential Long Term Equity Fund (ELSS) (R.)	4,000	1,87,000	SIP ongoing
	Franklin India Focused Equity (R.)	-	2,75,000	SIP Closed
2	NPS	5,000	75,000	SIP on going
3	EPF (Employee Contribution)	8,000	13,00,000	On going
4	FD	-	2,50,000	On going
5	Stocks	20,000	15,00,000	On going
6	Cash flow for Emergency	-	5,00,000	On going
	Total	80,000	47,85,000

I appreciate your support, thank you.

Ans:

Ans: The portfolio and the asset allocation for your profile seems fine. Presently 10 SIPs of Rs 57,000 are ongoing, lets attach the SIPs to respective goals:

1. Daughters' Higher Education: SIP worth Rs 12500 will create a corpus of Rs 75,00,000 in 15 years
2. Daughter's Marriage : SIP worth Rs 5000 will create the required corpus of Rs 1 cr in 23 years
3. Retirement : In 22 years Remaining SIP of Rs 39,500 will create a corpus of Rs 7 crore, plus through NPS the corpus that can be accumulated is @10% Rs 50 lakh ,plus through EPF @8.5% Rs 75 lakh, Through Stocks Rs 3.65 crore, therefore appx 12 crore can be created, for 25 crore the investment in MFs and Stocks needs to be doubled.

Ans: It's excellent to see your commitment towards investing for both short-term goals like buying a house and long-term goals like retirement. Let's review your portfolio and suggest any adjustments:
1. Motilal Oswal Nasdaq 100 Fund Direct Growth: This fund provides exposure to the top 100 companies listed on the Nasdaq stock exchange, offering diversification and growth potential in the global tech sector. It can be a suitable addition for long-term wealth accumulation.
2. UTI Nifty 50 Index Fund: Investing in an index fund like UTI Nifty 50 offers exposure to the top 50 companies in the Indian equity market. It provides stability and diversification, complementing your other equity investments.
3. ICICI Prudential Bluechip Fund Direct Growth: Bluechip funds focus on large-cap stocks with strong fundamentals, making them relatively less volatile. It's a prudent choice for stability and capital preservation.
4. HDFC Balanced Advantage Fund Direct Growth: This fund dynamically manages its equity exposure based on market conditions, offering a blend of growth and downside protection. It can be suitable for investors seeking a balanced approach.
5. HDFC Midcap Opportunities Fund Direct Plan Growth and AXIS Small Cap Fund Direct Growth: These funds provide exposure to mid-cap and small-cap segments, respectively, offering growth potential but with higher volatility. Ensure you're comfortable with the risk associated with these segments.
6. JM Value Fund Direct Growth and Parag Parikh Flexi Cap Direct: Both these funds follow value investing principles and focus on investing in fundamentally sound companies at reasonable valuations. They can be suitable for long-term wealth creation.
7. Nippon India Corporate Bond Fund Direct Growth: Investing in a corporate bond fund provides stability and income generation through fixed-income securities. It's a prudent choice for diversification and managing risk.
8. P2P Investment: Peer-to-peer lending can offer attractive returns but comes with higher risk compared to traditional investments. Ensure you've assessed the risk-reward profile and have a diversified portfolio to mitigate risks.
Index Funds:
• Index funds offer broad market exposure by tracking a specific index, such as the Nifty 50 or the Nasdaq 100. They provide diversification and low-cost access to the market, making them suitable for long-term investors.
• However, index funds are passively managed, meaning they aim to replicate the performance of the underlying index rather than outperforming it. While this reduces management fees and turnover costs, it also limits the potential for alpha generation.
• As a result, index funds may not capture opportunities for outperformance during market upswings or provide downside protection during downturns. Investors seeking higher returns may prefer actively managed funds that aim to outperform the market through strategic stock selection and portfolio management.
Direct Funds:
• Direct funds allow investors to purchase mutual fund units directly from the asset management company, bypassing intermediaries like distributors or brokers. This can result in lower expense ratios compared to regular funds, as there are no distributor commissions involved.
• However, direct fund investors are responsible for conducting their own research, selecting suitable funds, and monitoring their investments. This requires a certain level of financial literacy and investment expertise to make informed decisions.
• On the other hand, investing through a Certified Financial Planner (CFP) who holds the necessary credentials and expertise can provide valuable guidance and support. A CFP can help investors navigate the complexities of the financial markets, select appropriate investment strategies, and optimize their portfolio allocations based on individual goals and risk tolerance.
Considering your investment portfolio, it's essential to evaluate the role of both index funds and direct funds in achieving your financial objectives. While index funds offer cost-effective market exposure, direct funds provide the potential for active management and outperformance.
As a Certified Financial Planner (CFP), I recommend a balanced approach that incorporates both index funds and direct funds based on your risk profile and investment goals. Periodic reviews of your portfolio and ongoing guidance from a CFP can help ensure that your investment strategy remains aligned with your evolving needs and objectives.
Remember, investing is a journey, and it's essential to stay informed, stay disciplined, and seek professional guidance when needed. With the right approach and support, you can navigate the financial markets with confidence and work towards achieving your long-term financial goals.