I need a corpus of 20-30 lakhs for buying a car in next 2-3 years, I can start an SIP of 30000. Can you please help me which fund I should invest in? Is this sufficient to achieve my goal?

Ans: To create a corpus of 5 to 6 crs in 20 years you would be required to invest Rs 50000 per month for 20 years

Schemes that may be considered are as under in equal proportion;

-  Samco Flexi Cap Fund - Growth

- Axis Esg Equity Fund Regular Growth

- Uti Flexi Cap Fund – growth

- Hdfc Index Fund - Sensex Plan -Growth

To beat FD, you may consider Short term debt funds considering rising interest rate scenario are:

- Aditya Birla Sun Life Short Term Fund - Growth

- L&T Short Term Bond Fund - Growth

Ans: Current schemes are sufficient, no need to add further funds, please increase the investment in above funds only.

Ans: You've built a diversified portfolio with a mix of large-cap, mid-cap, small-cap, flexi-cap, and sectoral funds, which is a good start towards your ambitious goal. Here are some considerations and recommendations:

Asset Allocation: Given your goal and age, you might want to tilt your portfolio towards more equity-oriented funds. While equities carry higher risk, they also offer potential for higher returns over the long term.
Review & Rebalance: Periodically review your portfolio to ensure it aligns with your goals and risk tolerance. Rebalance if necessary to maintain your desired asset allocation.
Increase SIP Amounts: With a target corpus of 3 crores in 18 years, you might need to consider increasing your SIP amounts annually to account for inflation and potentially higher returns.
Diversification: Ensure you're not overly concentrated in a single asset class or sector. Diversification across asset classes and market caps can help spread the risk.
Consult a Financial Advisor: Given the complexity of financial planning, it might be beneficial to consult a financial advisor who can provide personalized advice based on your financial situation, goals, and risk tolerance.
Remember, investing is a journey, not a destination. Consistency, discipline, and periodic reviews are key to achieving your financial goals.

Ans: the best fund for you depends on several factors, including:

Investment Horizon: How long do you plan to invest until you need the Rs. 1 crore? A longer timeframe allows for more aggressive investments with higher growth potential but also higher risk.
Risk Tolerance: How comfortable are you with potential losses? Lower risk tolerance suggests a more conservative portfolio with a larger debt allocation.
Financial Goals: Is this Rs. 1 crore for retirement, a child's education, or another goal? Your goals will influence your investment strategy.
Here's what I can recommend:

Consult a Certified Financial Planner (CFP): A CFP can consider your unique circumstances and create a personalized investment plan to achieve your Rs. 1 crore goal.

Consider a Diversified Portfolio: Don't put all your eggs in one basket. A diversified portfolio with a mix of asset classes (equity, debt, etc.) can help manage risk. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Start an SIP in Equity Funds: If you have a long investment horizon and a moderate risk tolerance, consider a Systematic Investment Plan (SIP) in diversified equity mutual funds. SIPs help you invest regularly and benefit from rupee-cost averaging.

Here's an example (not a recommendation):

Invest in a Multi-Cap Fund (SIP): A Multi-Cap Fund invests across market capitalizations (large, mid, small).

Invest in a Flexi-Cap Fund (SIP): A Flexi-Cap Fund allows the fund manager more flexibility in choosing companies across market capitalizations.

Invest in a Debt Fund (SIP): A Debt Fund provides stability and regular income.

Remember:

There's no guaranteed path to Rs. 1 crore. Investment markets are volatile, and returns cannot be guaranteed.

Review Regularly: Review your portfolio (at least annually) with your CFP to ensure it remains on track.

By consulting a CFP and building a diversified portfolio, you can increase your chances of achieving your Rs. 1 crore goal!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You aim to build a Rs. 4 crore corpus in 8 years. Your annual income is Rs. 9 lakhs. This requires strategic planning and disciplined investments in mutual funds.

Systematic Investment Plan (SIP) Strategy
SIP is a disciplined way to invest. It helps in averaging the cost and mitigating market volatility.

Suggested Mutual Fund Categories
Large Cap Funds

These funds invest in large, established companies.
They offer stability and steady returns.
Ideal for risk-averse investors.
Flexi Cap Funds

Flexi Cap funds invest across large, mid, and small caps.
They provide a balanced approach to growth and stability.
Suitable for moderate risk takers.
Mid Cap Funds

Mid Cap funds invest in medium-sized companies.
They offer higher growth potential but come with higher risk.
Good for aggressive investors.
Small Cap Funds

Small Cap funds invest in smaller companies.
They have the highest growth potential but also the highest risk.
Best for very aggressive investors.
Suggested Investment Approach
Diversify Your Investments

Invest in a mix of Large Cap, Flexi Cap, Mid Cap, and Small Cap funds.
This diversification balances risk and return.
Increase SIP Amount Gradually

Start with an affordable SIP amount.
Gradually increase it as your income grows.
This boosts your investment corpus over time.
Avoid Index Funds and Direct Funds
Disadvantages of Index Funds

Index funds are passively managed.
They follow the market index, limiting potential returns.
Lack flexibility to respond to market changes.
Disadvantages of Direct Funds

Direct funds do not offer advisory services.
You miss out on professional guidance and support.
Investing through MFD with CFP credentials provides better advice.
Estimated SIP Amount
To achieve Rs. 4 crore in 8 years, you need a high SIP amount. Considering market returns and inflation, aim for a monthly SIP of around Rs. 1 lakh.

Benefits of Actively Managed Funds
Professional fund managers actively manage these funds.
They aim to outperform the market index.
Higher potential for better returns compared to index funds.
Regular Review and Rebalance
Review your portfolio every six months.
Rebalance it based on performance and market conditions.
This ensures alignment with your financial goals.
Final Insights
Building a Rs. 4 crore corpus in 8 years is ambitious. It requires disciplined SIP investments in a diversified mutual fund portfolio. Focus on actively managed funds through MFD with CFP credentials for better returns and guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in