I am 48 yrs old l am investing 7k per month in MF from last 2 years. Rs 1000 each in DSP Multi Asset allocation fund.
Canara robeco bluechip equity fund.
Mirae asset large and midcap fund.
Motilal oswal nifty next 50 index fund.
Kotak Emerging equity fund.
Quant smallcap fund.
Parag parikh flexi cap fund.
My horizon is 10 yrs.
Ans: That's a great start! Investing Rs. 7,000 monthly for the past 2 years shows discipline. Let's analyze your portfolio for your 10-year investment horizon.
Diversification is Key
Your portfolio has a good mix of fund types:
Multi-Asset: Provides diversification across asset classes for stability.
Large & Mid-Cap: Offers growth potential with established and growing companies.
Small-Cap: Carries more risk but has the potential for high returns.
Index Fund: Tracks a market index, offering market-related returns.
Actively Managed vs. Index Funds
While your Motilal Oswal Nifty Next 50 is an index fund, your other choices are likely actively managed. These funds have managers who try to outperform the market. This approach can be beneficial, but also carries inherent risks.
10-Year Timeframe Advantage
A 10-year horizon allows you to ride out market ups and downs. Equity funds, though volatile in the short term, have the potential for higher growth over the long term.
Points to Consider:
Overall Asset Allocation: Review the percentage allocation across each fund type to ensure it aligns with your risk tolerance.
Fund Performance: Track the performance of each fund and compare it to its benchmark.
Role of a CFP Professional
A Certified Financial Planner (CFP) professional can offer a more personalized assessment. They can help you:
Analyze Asset Allocation: Ensure your portfolio mix matches your risk tolerance and goals.
Review Fund Performance: Identify any underperforming funds and suggest adjustments.
Rebalance Regularly: Periodically rebalance your portfolio to maintain your desired asset allocation.
Remember:
Market performance can impact your returns. However, your diversified portfolio and long-term focus are positive steps.
Next Steps:
Consider consulting a CFP professional for a detailed portfolio review.
Monitor your fund performance and rebalance as needed.
Keep investing for the long term!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
