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Laximan
Laximan
Ramalingam

Ramalingam Kalirajan4660 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Asked on - Jul 04, 2023Hindi

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Hi, I am LY,aged 41 yrs & want to have corpus of around 2cr in next 20yrs. currently i have invested in DSP tax saver fund- regular plan growth-50k, ICICI prudential flexi cap fund growth-5k monthly, Bandhan flexicap fund growth regular plan-2500 montly,Mahindra manulife large and midcap fund regular growth-3k monthly,FNGP- uti floater fund regular plan-1500 monthly,MCGP-UTI mid cap fund regular plan 3500 montly & Nippon India Growth fund-2lac & in same 3k monthly, My current value of investments is 11.50 lac & i want to start more 10k monthly. Please advise how much more investments to be made for 2cr corpus in next 20 years n which funds?
Ans: Assessment and Recommendation for Achieving a Corpus of Rs. 2 Crores in 20 Years:

Current Investment Portfolio Review:

Your existing portfolio demonstrates a proactive approach towards wealth accumulation, reflecting a mix of equity, hybrid, and debt funds.
Investments in tax-saving funds like DSP Tax Saver Fund and diversified equity funds like ICICI Prudential Flexi Cap Fund exhibit a focus on long-term growth potential.
However, it's essential to assess the adequacy of your current investments and determine additional contributions required to achieve your target corpus of Rs. 2 Crores in 20 years.
Analysis of Additional Investments Required:

Given your current investment value of Rs. 11.50 Lacs and an investment horizon of 20 years, you need to calculate the required monthly SIP amount to achieve your target corpus.
Considering an assumed annualized return rate based on historical performance of mutual funds, you can estimate the monthly SIP required to reach your goal.
It's crucial to consider factors such as inflation, investment expenses, and market volatility while determining the additional investments needed to achieve your financial objective.
Recommendations for Asset Allocation and Fund Selection:

Given your age and investment horizon, maintaining a predominantly equity-oriented portfolio with a long-term perspective is advisable to maximize growth potential.
Allocate a higher proportion of your investments to equity funds, preferably diversified across market capitalizations and sectors, to capitalize on growth opportunities.
Consider adding exposure to mid-cap and small-cap funds for potential higher returns, but be mindful of the associated volatility.
Incorporate debt funds to provide stability to your portfolio and mitigate risk, especially as you approach your financial goal.
Financial Planning and Goal Setting:

Utilize online SIP calculators or consult with a Certified Financial Planner to determine the exact monthly SIP amount required to achieve your target corpus of Rs. 2 Crores in 20 years.
Review your investment strategy periodically and make necessary adjustments based on changing market conditions, financial goals, and risk tolerance.
Stay disciplined with your investment approach and avoid making impulsive decisions, keeping your long-term financial objectives in mind.
In conclusion, by systematically increasing your monthly SIP contributions and maintaining a well-diversified portfolio aligned with your risk profile and investment horizon, you can work towards achieving your target corpus of Rs. 2 Crores in 20 years.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
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Sanjeev

Sanjeev Govila458 Answers  |Ask -

Financial Planner - Answered on Jul 27, 2023

Asked on - Jun 09, 2023Hindi

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Sanjeev

Sanjeev Govila458 Answers  |Ask -

Financial Planner - Answered on Jun 02, 2023

Asked on - Jun 02, 2023Hindi

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Money
Hi, I am LY, currently i have invested in DSP tax saver fund- regular plan growth-50k, ICICI prudential flexi cap fund growth-5k monthly, Bandhan flexicap fund growth regular plan-2500 montly,Mahindra manulife large and midcap fund regular growth-3k monthly,FNGP- uti floater fund regular plan-1500 monthly,MCGP-UTI mid cap fund regular plan 3500 montly. My current value of investments is 6.50 lac & i want to start more 10k monthly. Please advise whether above investments are ok & to start with 10k monthly in which MF i should start?
Ans: I have no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down. Hence, it is not possible for me to review your complete portfolio and suggest you to invest the additional SIP amount.

However please note that mutual funds work the best when you’re in it for a 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’.

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. The general portfolio construction that I would suggest is:-
1. Large Cap / Index Fund – 40% of SIP amount
2. Flexicap Fund – 20%
3. Large & Midcap Fund – 20%
4. Asset Allocator Fund – 20%

In the above portfolio, the risk has been avoided. If you want more risk, then you may add mid and/or small cap funds to the extent of your risk by reducing the Large cap Fund and maybe replacing the Asset Allocator fund.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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