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i am 46 years old and plan to invest 65000 PM on sip for my Dougher education , Marriage and retirement. For Daughter education I need 45 Lakhs (current cost) in 8 years and for her marriage 40 Lakh (current cost) in 12 years. I need 2 crores in 12 years for my retirement. My profile is moderately aggressive risk taker. i have currently have 40Lakhs in mutual fund portfolio. current mutual fund portfolio is a mix of midcap , Flexicap and small cap funds. i am currently doing a SIP of 20000 in Canara Robeco Emerging Equities-Direct-Growth,Rs 5000 sip in DSP Small Cap Fund-Direct-Growth , Rs 5000 SIP in Invesco India Infrastructure Fund - Direct Plan Growth and sip of 10000 in Kotak Emerging Equity Fund - Direct Plan - Growth . I have employee insurance and additional term insurance on own. i have employee medical insurance and additional family medical insurance of 5 lakh on my own. i have paid off my home loans.
i want to increase my current sip of Rs 40000 to 65000 pm please suggest mutual funds to meet my goals for Daughter education , Marriage and retirement.
Ans: Given your financial goals for your daughter's education and marriage, as well as your retirement, let's devise a strategic plan to achieve them through SIP investments.
Assessing Your Financial Goals
You aim to accumulate Rs 45 lakhs in 8 years for your daughter's education, Rs 40 lakhs in 12 years for her marriage, and Rs 2 crores in 12 years for your retirement. These are ambitious yet achievable goals with the right investment approach.
Understanding Your Risk Profile
As a moderately aggressive investor, you are willing to accept higher risks in exchange for potentially higher returns. This risk appetite aligns well with your long-term investment horizon and financial goals.
Evaluating Your Current Mutual Fund Portfolio
Your existing portfolio consists of midcap, flexicap, and small-cap funds, reflecting a diversified approach to equity investments. These funds have the potential to generate high returns over time, suitable for your risk profile and long-term goals.
Increasing Your SIP Investments
To increase your SIP from Rs 40,000 to Rs 65,000 per month, we need to identify suitable mutual funds aligned with your financial goals and risk tolerance.
Choosing Mutual Funds for Education and Marriage Goals
Education Goal (Rs 45 lakhs in 8 years): Given the relatively short time horizon, focus on equity funds with a blend of midcap and flexicap funds. These offer growth potential while managing volatility.
Marriage Goal (Rs 40 lakhs in 12 years): With a slightly longer horizon, maintain exposure to midcap and flexicap funds but consider adding large-cap funds for stability and consistent returns.
Retirement Planning (Rs 2 crores in 12 years)
Balanced Approach: Given the importance of this goal, adopt a balanced approach with exposure to equity and debt funds. Allocate a significant portion to equity for growth potential while diversifying into debt for stability.
Systematic Asset Allocation: Implement a systematic asset allocation strategy, gradually shifting towards debt as you approach retirement to safeguard accumulated wealth.
Benefits of Actively Managed Funds Over Index Funds
Actively managed funds offer several advantages over index funds:
Expert Management: Actively managed funds are overseen by professional fund managers who actively research and select investments, aiming to outperform the market.
Flexibility: Fund managers have the flexibility to adjust portfolios based on market conditions and opportunities, potentially enhancing returns.
Conclusion
Increasing your SIP investments to Rs 65,000 per month is a prudent step towards achieving your financial goals. By diversifying your portfolio with a mix of equity and debt funds, and focusing on actively managed funds, you can potentially maximize returns while managing risks effectively.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in