Sir i have started investing in canara robeco emerging equities for rs 2500 per month since last month. Iam 44 yrs old. Cud u pls suggest any other suitable sips for Rs 5000 per month.

Ans: I have no idea about your age, future financial goals, your risk profile and your existing investments. So, while giving one suggested solution to you, I’m assuming that you’re young (less than 40 years of age), are open to equity investing, have a long term horizon of at least 7 years or more and would have the nerves to not get unduly perturbed if markets go temporarily down.

Very first point to note is that when you write that you’re investing for 20 years, please do imbibe it into your thinking too that you’re in it for a very long term. Typically, investors change their investing horizon as per the market conditions – if markets remain good, they’re long term players, if markets turn down, they start exiting in panic and become short term players. Please remember that markets will always give great returns only if you ‘spend time in the markets, rather than try timing the market’.

Since you’re just 37 years old, you have a huge age advantage (those younger have even more advantage!) – use it to your benefit. I have no idea about your other investments, your future financial goals and your risk profile (implying how much volatility are you comfortable with in the markets).

So, I’m just giving you a high-equity portfolio which is a long term portfolio but needs to be reviewed and maybe rebalanced every year. I’m also assuming that you have no other funds or equity.
The portfolio that I would suggest is:-
1. Large Cap - 20% of SIP amount - HDFC Index Fund
2. Flexicap – 20% - Parag Parikh Flexicap Fund
3. Midcap – 20% - Kotak Emerging Equity Fund
4. Aggressive Hybrid – 20% - Canara Robeco Equity Hybrid Fund
5. Small Cap – 20% - SBI Small Cap Fund

In the above portfolio, the last, Small Cap category, will be very volatile and you will need to get used to it. If you’re not up to its gyrations, stick to first four with 25% allocation each.

Ans: It's great that you're investing your monthly surplus in SIPs to build your wealth.

You have a well-diversified portfolio and the funds in your portfolio are performing well in the current market scenario. In the finance planning of any portfolio, it is also important to consider many factors, including client age, risk profile, current asset allocation, etc.

As you’re 55 years of age and already have a high allocation of equity in your portfolio, for the additional investment, I suggest you start investing in a Balanced Advantage Fund and Equity Saving Fund to make your portfolio a bit conservative.

Ans: Investing regularly is a commendable habit, and you're doing great dedicating 10,000 Rs every month. As a Certified Financial Planner, I understand the importance of choosing the right investment avenue.

Mutual Funds through Systematic Investment Plans (SIPs) can be a wise choice. They offer diversification, professional management, and the flexibility to invest small amounts regularly. Additionally, they suit investors aiming for long-term wealth creation.

When it comes to SIPs, it's crucial to consider your risk appetite, investment goals, and time horizon. Opting for actively managed funds can be advantageous. Unlike index funds, actively managed funds have the potential to outperform the market, thanks to skilled fund managers who actively select investments.

Moreover, investing through a Certified Financial Planner can offer personalized advice and ongoing support. They can assist in selecting suitable funds, monitoring your portfolio, and making necessary adjustments based on market conditions and your changing financial circumstances.

While direct funds may seem appealing due to lower expense ratios, they lack the guidance and expertise provided by financial professionals. Regular funds, accessed through a Mutual Fund Distributor with a CFP credential, offer personalized service and assistance, ensuring your investments align with your financial goals.

Remember, investing is a journey, and it's essential to stay committed and patient, especially during market fluctuations. Regular review of your portfolio and making adjustments as needed can help you stay on track towards achieving your financial objectives.

Keep up the excellent work with your monthly investments, and may your financial journey be filled with success and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in