Following are monthly SIP’s ongoing for 16 months now. Trying to build a corpus of 2-3 Cr in next 3-4 yrs and set up a SWP of atleast 75k per month from year 5. Any suggestions or recommendations are appreciated.
1. Quant Small Cap Fund Growth Direct Plan - 25000
2. Adita Birlya Sun Life ELSS Cap Wdrl - 10000
3. ICICI Pru Technology Fund Direct Plan Growth - 15000
4. Navi NASDAQ 100 Fund of Fund Growth - 7500
5. Aditya Birla Sun Life Corporate Bond Fund Direct Plan Growth - 7500
6. Nippon Gold India Gold Savings Fund Direct Plan Growth - 5000
7. 360 ONE Focused Equite Fund - 20000
8. Axis Growth Oppurtunities Fund Regular - 20000
9. ICICI Pru Commodities Fund Regular - 20000
10. UTI Flexi Cap Fund Regular - 20000
11. Nippon India Quant Retail - 20000
12. Quant BFSI Direct Payout (NFO) - 10000
13. Canara Robeco Small Cap Fund Growth - 10000
Ans: Assessment of Monthly SIP Portfolio for Wealth Accumulation and SWP Planning:
Analyzing Your Investment Strategy:
Your approach towards building a substantial corpus of Rs. 2-3 Crores within the next 3-4 years is ambitious yet achievable with a disciplined investment strategy.
The selection of mutual funds across various categories reflects a diversified approach aimed at optimizing returns while managing risk.
Evaluation of Mutual Fund Selections:
Equity-oriented funds like small-cap, ELSS, and technology funds have the potential to deliver high growth over the long term but come with higher volatility.
Fixed income options such as corporate bond funds and gold savings funds provide stability to the portfolio and serve as a hedge against market fluctuations.
Funds focused on specific sectors like technology and commodities offer the opportunity to capitalize on sectoral trends but may exhibit higher concentration risk.
Risk Management and Asset Allocation:
Diversification across asset classes is essential to mitigate risk and achieve stable returns over the investment horizon.
As you aim to set up a Systematic Withdrawal Plan (SWP) of at least Rs. 75,000 per month from year 5, it's crucial to ensure that your portfolio is well-balanced and aligned with your income requirements.
Consider reviewing your asset allocation periodically and rebalancing your portfolio to maintain the desired risk-return profile.
Setting Realistic Expectations:
While your goal of generating Rs. 75,000 per month through SWP from a corpus of Rs. 2-3 Crores is attainable, it's essential to set realistic return expectations based on market conditions and historical performance.
Equity-oriented funds may offer higher returns but come with higher volatility, while fixed income options provide stability but typically offer lower returns.
Consult with a Certified Financial Planner to develop a customized financial plan tailored to your specific goals, risk tolerance, and investment horizon.
Recommendations:
Continue your monthly SIP investments but consider reviewing your portfolio to ensure alignment with your long-term financial objectives.
Given your goal of setting up a SWP, focus on building a well-diversified portfolio with a mix of equity and fixed income funds to balance growth potential with stability.
Regularly monitor the performance of your investments and make adjustments as needed to stay on track towards achieving your financial goals.
In conclusion, by maintaining a disciplined investment approach and ensuring proper diversification, you can work towards building a substantial corpus and setting up a reliable income stream through SWP in the future.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
