Hi, I am 45 and have a corpus of 4.5 cr (1 cr in shares and MF, and the rest in debt instruments - LIC, FD, RD, PF, and PPF). I run multiple businesses and trying for a total corpus of 10 cr in another 15 years. My home loans are all paid off and I expect that my children (both US citizens, 14 and 15 years old) will get scholarships in US colleges. Every month I invest around 1.1 lakh in MF and shares and 2.5 lakhs in FD and LIC. I keep investing in shares such as TCS, Infosys, Wipro, Unilever, HCL, and HDFC. In addition, I invest in mutual funds - SBI Magnum mid-cap, SBI contra, HDFC Multi cap, Kotak emerging equities, and ICICI flexi cap. I also invest in HDFC and Tata ULIP plans. Is this the correct strategy to reach my goal? Or am I being a bit conservative, and should invest more in equity?
Ans: Every investor has his/her own risk appetite and financial goals. Hence, the investment strategy may vary from person to person.
As your time horizon for the goal is of long-term, we would suggest investing more in mutual funds, and the FD investment option can be rethought. Direct investment in shares requires a thorough analysis of companies’ fundamentals periodically, which most of the people are not able to do. You are already investing a large amount in Debt instruments. You may reconsider investing in equity through equity mutual funds.