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Ramalingam Kalirajan |8260 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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

Question by rudolf on Sep 20, 2023Hindi

Thank you Dev, for considering my previous question, Dev. i have one more inquiry. This pertains to my long-term investment portfolio, which I've been managing since 2018. Previously, I was using a broker's services, but I've since transitioned to direct funds, I have allocated approximately 19.5 lakhs into the following mutual funds through a systematic investment plan (SIP) over the course of 5 years (starting in 2018-Dec). As of the current date, the total corpus stands at around Rs. 28.4 lakhs, with an XIRR of 15.4%. I have been investing in these funds through a broker and this i have stopped now and now doing it direct mutual funds . My intention is to leave the previous one untouched for another 5 years, using them to finance the construction of my house. Could you please confirm whether I should make any adjustments to this investment if I choose to maintain the status ? What could be the approximate corpus can i assume in next 5 years for it ? below are the funds, where i have invested which shows current XIRR against each with overall XIRR 15.4% Axis Bluechip Reg-G 9.8% ICICI Pru Bluechip Reg-G 19.6% SBI Bluechip Reg-G 16.1% Axis Focused 25 Reg-G 13.4% Axis Midcap Reg-G 19.0% DSP US Flexible Eqt Reg-G 10.6% ICICI Pru Tech Reg-G 24.5% Kotak Flexicap Reg-G 17.2% Mirae Asset Emrgng Bluechip Reg-G 21.5% PGIM Ind Flexi Cap Reg-G 14.1% Out of total 19 .75 lakh invested, this is breakdown of Categorization Large-cap Rs. 8 lakh Mid-Cap Rs. 1.9 lakh Mid&large-cap Rs. 1.35lakh Flexi-Cap is 5.31 lakh International is 1 lakh IT-sector : 2 lakh

Ans: It's essential to acknowledge your decision to transition to direct mutual funds. However, direct mutual funds require more active management and may not offer the same level of handholding as investments made through a broker. Given the importance of your long-term investment portfolio, it might be worth considering whether the potential benefits of lower expense ratios outweigh the need for professional guidance and advice.

Regarding your current investment allocation, maintaining the status quo may seem reasonable, especially with an XIRR of 15.4%. However, it's crucial to reassess your portfolio periodically and ensure it aligns with your financial goals and risk tolerance.

As for the potential corpus in the next five years, historical performance suggests it could grow to around Rs. 56 lakhs, assuming a similar XIRR. Nevertheless, market conditions can change, and actual returns may differ from projections. Regular monitoring and adjustments to your portfolio may be necessary to stay on track with your objectives.

Consider seeking advice from a certified financial planner who can offer personalized guidance tailored to your specific circumstances and goals. They can help you navigate the complexities of investing and make informed decisions to optimize your portfolio's performance.

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