I am 61 years retired person, majority of retirement funds invested in FDs and have MF investment in few funds. Iam getting pension required for maintenance as of now.
Parakh Parikh Flexi Fund (Balance Rs.3 lakh with monthly SIP of Rs 2500/-, other than this, I have SBIMF Small Cap Rs.5 lakh, SBI Bluechip 3.50 lakh, Sundaram Midcap 2 lakh, Nipon India Largecap Rs. 2 lakh, ICICI Prudential Infrastructure Rs. 2 lakh, Bandhan Infrastructure Rs. 2 lakh. Contrubuting Rs. 50,000/- pa in NPS for tax purpose. Please guide
Ans: That's a great question, sir! You've made smart choices by investing in FDs for safety and some MFs for growth. Here's a breakdown of your portfolio and some suggestions:
Current Portfolio Mix:
Large Focus: A significant portion is in large-cap funds (SBI Bluechip, Nippon India Largecap) offering stability but potentially lower growth.
Small & Mid-Cap Exposure: You have exposure to small-cap (SBI Small Cap) and mid-cap funds (Sundaram Midcap) which can offer higher growth potential but also come with higher risk.
Infrastructure Focus: Investments in ICICI Prudential Infrastructure and Bandhan Infrastructure provide exposure to a specific sector.
Flexi-Cap Fund: Parag Parikh Flexi Cap offers diversification across market capitalizations.
Potential for Improvement:
Review Asset Allocation: Consider consulting a Certified Financial Planner (CFP) to assess your risk tolerance and adjust your asset allocation (mix of investments) if needed. They can help ensure a balance between stability (debt) and growth (equity).
Sector Concentration: Consider reducing your exposure to the infrastructure sector if a large part of your portfolio is already there. Diversification helps manage risk.
Review Fund Performance: Review the performance of your existing funds. A CFP can help analyze their performance and suggest replacements if necessary.
Benefits of a CFP:
Personalized Plan: A CFP can create a personalized investment plan considering your retirement goals, risk tolerance, and existing investments.
Ongoing Monitoring: They can monitor your portfolio and recommend adjustments as your needs evolve.
Your NPS contribution is commendable! It provides tax benefits and some retirement income.
Remember:
Risk Tolerance: As a retiree, your risk tolerance might be lower. A CFP can help adjust your portfolio accordingly.
Regular Review: Review your portfolio (at least annually) with a CFP to ensure it remains aligned with your goals.
By consulting a CFP, you can potentially optimize your portfolio for stability, growth, and income needs during your retirement!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
