I am 54 yrs old & i have currently 3 SIP's 0f 5000 1) Aditya birla SL small cap fund Reg(G) 2) HSBC small cap fund Reg (G) 3) Mirae asset large and midcap fund reg (G) and Fix in MF 250000 each in Kotak flexi cap fund Reg (G) and Mirae asset large cap fund Reg (G) from last 6yrs 3 months. Also My wife SIP is 10000/month in 1) ICICI Pru MidCap F(G) 2) Mahindra Manulife small Cap F Reg (G) 3) Motilal Oswal Large and Mid cap fund Reg(G) 4) Nippon india Multi cap Fund (G) from last 6 months. I want to 1.2 to 1.5 crore in next 5 yrs. How much investment required to achieve the corpus.
Ans: It's commendable that you and your wife have taken proactive steps towards securing your financial future through systematic investment plans (SIPs) and fixed investments in mutual funds. Let's formulate a strategic plan to achieve your desired corpus of 1.2 to 1.5 crores within the next 5 years.
Assessing Current Investments
Evaluation of SIPs:
Analyze the performance of your current SIPs in small-cap, mid-cap, and large-cap funds to ensure they align with your risk appetite and return expectations.
Review the consistency of fund performance, expense ratios, and fund manager expertise to gauge the suitability of these investments for achieving your financial goals.
Fixed Investments in Mutual Funds:
Assess the performance of your fixed investments in flexi-cap and large-cap funds over the past 6 years and 3 months.
Consider the fund's track record, investment style, and portfolio composition to determine their potential to contribute towards your desired corpus.
Review of Wife's SIPs:
Evaluate the suitability of your wife's SIPs in mid-cap, small-cap, large & mid-cap, and multi-cap funds based on their risk-return profile and investment objectives.
Ensure that the chosen funds complement your overall investment strategy and align with your joint financial goals.
Calculating Required Investment
Goal-Based Investment Calculation:
Calculate the required monthly investment amount based on the targeted corpus of 1.2 to 1.5 crores and the remaining investment horizon of 5 years.
Consider factors such as expected rate of return, inflation, and risk tolerance to arrive at a realistic investment target.
Systematic Increase in Investment:
Determine the incremental increase in SIP amounts and fixed investments required to bridge the gap between your current portfolio value and the desired corpus within the specified timeframe.
Ensure that the revised investment plan is feasible and sustainable within your financial capacity.
Adjusting Investment Strategy
Portfolio Rebalancing:
Consider reallocating your existing investments or introducing new funds to diversify your portfolio and optimize returns.
Monitor the performance of your investments regularly and make necessary adjustments to maintain alignment with your financial goals.
Risk Management:
Mitigate risk by diversifying across different asset classes, market capitalizations, and investment styles.
Review your asset allocation periodically to ensure that it reflects changes in market conditions and your evolving risk tolerance.
Conclusion
By conducting a thorough assessment of your current investments and recalibrating your investment strategy to align with your financial goals, you can work towards achieving your target corpus of 1.2 to 1.5 crores within the next 5 years.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
