Hello Sir, I am 34 years old and with 10 years in mind for investment to reach 10CR, I have planned to invest 2 lakh monthly in SIP with stepping up by 10 % every year. I have already invested 15 lakhs in Mutual fund th. SIP, 15 lakhs in shares and 20 lakhs in PPF. and .Shall I increase the already invest amount in MF or shall take 1-2 more MFs scheme like Multi-Cap/Large Cap/another Flexi Cap OR any hybrid MF schemes Would taking 1-2 more MF scheme will overdiversify the portfolio? Can you please suggest some pointers on this.
Ans: Current Investment Analysis
You have invested Rs. 15 lakhs in SIPs, Rs. 15 lakhs in shares, and Rs. 20 lakhs in PPF. Your plan to invest Rs. 2 lakhs monthly with a 10% yearly step-up is commendable.
Assessing Diversification
Adding 1-2 more mutual funds could be beneficial. However, ensure they align with your financial goals and risk tolerance.
Multi-Cap Funds
Multi-cap funds offer exposure across market capitalizations. They balance risk and reward effectively.
Large-Cap Funds
Large-cap funds invest in established companies. They provide stability and steady returns.
Flexi-Cap Funds
Flexi-cap funds have flexibility to invest in any market cap. They adapt to market conditions, optimizing returns.
Avoiding Over-Diversification
Too many funds can dilute returns. Stick to a manageable number, focusing on quality and performance.
Investment Strategy
Step-Up SIP
Continue with your step-up SIP strategy. It will enhance your investment corpus significantly over 10 years.
Hybrid Funds
Consider hybrid funds for balanced risk. They invest in both equity and debt, providing stability and growth.
Final Insights
Evaluate your current funds. Add 1-2 more aligned with your goals. Avoid over-diversification by focusing on quality. Your step-up SIP strategy is excellent for reaching your Rs. 10 crore goal.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
