Hi Sir,I'm 25 years old and earn 28,000 a month. I have SIPs of 2500 each in Tata digital India fund and Axis small cap fund and around 2,75,000 in Savings account. Please suggest me if I should do modification to my current SIPs or increase my SIP amount and what to do with savings in account. My risk appetite is high as I don't have any expenses and can invest aggressively. Any suggestions would be appreciated. Thanks
Ans: Given your age, income, and high risk appetite, you have a great opportunity to invest aggressively for long-term growth. Here's a suggested approach:
Certified Financial Planner (CFP): Consult a CFP to create a personalized financial plan considering your goals, risk tolerance, and time horizon.
Modify or Increase SIPs:
Equity Funds: Since you have a high risk appetite, consider adding more equity funds to your portfolio.
Sectoral Funds: Explore adding sectoral or thematic funds for higher growth potential. However, these funds come with higher risk.
Increase SIP Amount: Gradually increase your SIP amount in existing or new funds to accelerate wealth accumulation.
Savings:
Emergency Fund: Maintain 3-6 months' expenses in a high-interest savings account as an emergency fund.
Invest: Invest a portion of your savings in equity mutual funds or stocks for long-term growth. You can also consider tax-saving ELSS funds to save tax and grow wealth simultaneously.
Review and Adjust:
Regular Review: Regularly review your portfolio with your CFP to ensure it's aligned with your goals and risk appetite.
Adjust SIPs: Make necessary adjustments to your SIPs based on performance, market conditions, and changing goals.
Considering your income and savings, you can aim to increase your SIPs by allocating a higher percentage of your income towards investments. For instance, increasing SIPs to ?5,000 or ?7,000 monthly can accelerate wealth accumulation.
Remember, while investing aggressively can potentially lead to higher returns, it also comes with higher risk. Ensure you're comfortable with the risk associated with your investment choices and consult your CFP for personalized advice.
