Hello Ulhas joshi sir, All our corpos mostly 90% is in debt(in the form of FDR's, SSSC, LIC etc) and rest 10% in MF and ULIP. I am 32 years and my mother is 61 years. I am working professional in tier 2 city and mother is retired from government job. I am seeking a financial advice to balance out the investments in debt and want some exposure in equity by investing through MF's. We have a total of 3 cr in debt and approx 40 lacs in equity market. Please suggest us the suitable mix so that our corpus would also grow and expenses would also meet out. Our total expenses per month would be around 35 K. Please also suggest the names of mutual funds to start investing?? Regards, Bharat Manik
Ans: Hi Bharat & thanks for writing to me. I am assuming that you are able to cover your living expenses from your salary & Mothers' pension.
Assuming that you are fine with the risks of equity, you can consider rebalancing your portfolio from the debt tilt to equity tilt.
You can consider investing around 1 Crore in mutual funds, at the below allocation:
1-Small Cap Funds: 10%
2-Mid Cap Funds : 10%
3-Large Cap Funds:15%
4-Flexi Cap Funds:15%
5-Balanced Advantage Funds/Dynamic Asset Allocation Funds: 25%
6-Multil Asset Allocation Funds:25%
The investment in pure equity funds (points 1 to 4) will help your corpus grow but with higher volatility & the BAF/DAAF & Multi Asset Allocation Funds can provide relative stability to your portfolio.
I recommend you to meet a financial planner who can understand your needs & goals to craft a detailed plan for you.
