Hello Financial planning experts
I am 28 years old, My salary is 1.52 lakhs per month. I have 19 lakhs investment including 14 lakhs MF investment, 1 lakh in stocks, 4+ lakhs in NSC. Every month i have minimum 50k to invest as i live below to my needs, all i am giving 40k straight to my mother for her financial needs, 12k rent, 15k EMI on one of my loan which would be closed in 2 years. Can anyone suggest which MF to pick to diversify my portfolio with high returns as my risk appetite is high.
Ans: It's great to see your proactive approach towards financial planning at a young age. With your solid foundation of investments and surplus income, you're well-positioned to further diversify your portfolio and potentially enhance your returns.
Given your high risk appetite, you may consider investing in equity mutual funds (MFs) to capitalize on growth opportunities while diversifying your portfolio. Here are some considerations when selecting MFs:
1. Large Cap Funds: These funds invest in large, well-established companies with a track record of stable performance. They offer relatively lower risk compared to mid-cap and small-cap funds while still providing growth potential.
2. Mid and Small Cap Funds: These funds invest in mid-sized and smaller companies with higher growth potential but also higher volatility. They can be suitable for investors with a higher risk appetite seeking potentially higher returns over the long term.
3. Sectoral or Thematic Funds: If you have a specific sector or theme you're bullish on, such as technology, healthcare, or infrastructure, you may consider investing in sectoral or thematic funds. These funds focus on specific industries or themes and can offer higher returns if the sector performs well.
4. Multi-Cap Funds: These funds invest across companies of different market capitalizations, providing diversification and flexibility. They adjust their allocations based on market conditions, making them suitable for investors seeking diversified exposure to the equity market.
Before investing, carefully assess your risk tolerance, investment horizon, and financial goals. Consider consulting with a Certified Financial Planner (CFP) who can provide personalized advice tailored to your needs and circumstances.
Remember to review your investment portfolio periodically and rebalance as needed to ensure alignment with your financial objectives. Stay disciplined with your investments and continue to invest regularly to harness the power of compounding over time.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
