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Ramalingam Kalirajan |6041 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 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

Asked by Anonymous - Jul 16, 2024Hindi

I am a Nri based in Singapore age 31 sole earner of my family of 3. In Inr my income is 63 lakhs and I want to invest money to save for my daughter who is 3 months old right now and also for my retirement. Below is my portfolio- 29k sip - 2.90 lkh invested 1.13 lkh profit Stocks- 2.7 lkhs invested 3.12 lkh profit Small case- 19k invested 5k profit Nps - 1 lkh invested - 90k profit One 2- bedroom flat in udaipur no loan bought for 35 lkh No loan no credit card 49 lkh in saving in Singapore. Health insurance in Singapore by company Ppf- 12 lkh Able to save 4000 sgd monthly after rent; grocery etc. How much more should i invest or should just continue with above? Sip - 5k canara robecca emerging equities growth large and mid cap. 3k Nippon india small cap. 1k Canara robecca elss tax saver fund. 10k Quant elss tax saver and 10k hdfc defence fund growth equity sectoral

Ans: You have a well-diversified portfolio, which is a strong foundation. Here's a detailed look at your investments:

SIPs: Rs. 29k invested with Rs. 1.13 lakh profit.
Stocks: Rs. 2.7 lakh invested with Rs. 3.12 lakh profit.
Smallcase: Rs. 19k invested with Rs. 5k profit.
NPS: Rs. 1 lakh invested with Rs. 90k profit.
Flat in Udaipur: Bought for Rs. 35 lakh, no loan.
Savings in Singapore: Rs. 49 lakh.
PPF: Rs. 12 lakh.
SIPs: 5k in Canara Robeco Emerging Equities Growth Large and Mid Cap, 3k in Nippon India Small Cap, 1k in Canara Robeco ELSS Tax Saver Fund, 10k in Quant ELSS Tax Saver, 10k in HDFC Defence Fund Growth Equity Sectoral.
Your investments are diverse, including equity, real estate, and fixed income. This diversification reduces risk and ensures stability.

Investment Strategy for Daughter's Education
To secure your daughter's future, start a dedicated education fund:

Equity Mutual Funds: Equity funds are ideal for long-term growth. They can offer high returns over 15-20 years, which aligns with your daughter's education timeline.
SIPs for Education Fund: Start an SIP specifically for her education. Consider allocating a portion of your monthly savings to this SIP.
Review and Adjust: Regularly review the fund's performance and adjust contributions if needed.
Retirement Planning
Your current investments are strong, but there's always room for enhancement:

Continue Current Investments: Your existing SIPs, stocks, and other investments are performing well. Continue these.
Diversify Further: Include a mix of equity and debt funds. Equity funds can provide growth, while debt funds add stability.
Increase SIP Amounts: Gradually increase your SIP contributions as your income grows. This will help in compounding your returns.
Equity and Debt Balance: Maintain a balance between equity and debt funds to manage risk and ensure steady growth.
Monthly Savings Allocation
You save 4000 SGD monthly (approximately Rs. 2.4 lakhs). Here's a suggested allocation:

Increase SIPs: Allocate a portion to increase your SIP contributions in the existing funds.
Diversified Mutual Funds: Invest in additional diversified mutual funds to spread risk and enhance returns.
Debt Funds: Allocate a part to debt funds for stability and lower risk.
Professional Guidance
It's crucial to seek advice from a Certified Financial Planner:

Regular Consultation: Schedule regular reviews with your planner to assess your portfolio and make necessary adjustments.
Goal Setting and Tracking: Clearly define your goals (daughter’s education and retirement) and track your progress.
Final Insights
Your portfolio is well-structured, but consider the following to optimize your investments:

Increase SIPs: Gradually increase your SIP contributions for higher returns.
Focus on Equity Funds: Prioritize equity funds for long-term goals like your daughter's education and your retirement.
Diversification and Balance: Ensure a balanced mix of equity and debt funds to manage risk.
Regular Reviews: Keep reviewing your portfolio with a Certified Financial Planner to stay on track with your goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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