Age41 yrs , Currently been doing monthly SIP in below mutual funds:
* Parag parikh elss tax saver fund : 2000 a month ( 1 year )
* Quant mid cap fund : 5000 a month (started newly )
I am self employed who earns minimum 50k a month I have term insurance and health insurance for my family .
Would like to retire my age 55 , keeping inflation and children education and other expenses in my mind .
How should I go ahead
Ans: You are 41 years old. You earn Rs. 50,000 a month. You have term insurance and health insurance for your family. You are investing in two SIPs: Parag Parikh ELSS Tax Saver Fund (Rs. 2,000/month) and Quant Mid Cap Fund (Rs. 5,000/month).
Retirement Goal
You plan to retire at 55. Consider inflation, children's education, and other expenses in your planning. Start by estimating your retirement corpus. This should cover living expenses, healthcare, and other needs.
Investment Strategy
Increase your SIP contributions gradually. This will help build a larger retirement corpus. Diversify your investments across equity, debt, and hybrid funds. This balances risk and provides stable returns.
Actively Managed Funds
Actively managed funds offer better potential returns. Fund managers select stocks based on research. This can outperform index funds, which only track the market.
Tax Saving and Growth
Continue investing in ELSS funds for tax benefits. They also provide good returns over the long term. Consider adding more equity funds for growth. Equity funds can beat inflation and provide higher returns.
Education Fund for Children
Start a separate education fund for your children. Invest in a mix of equity and debt funds. This ensures their education expenses are covered.
Emergency Fund
Maintain an emergency fund to cover at least six months of expenses. This provides financial security in case of emergencies. Use a high-interest savings account for this fund.
Regular Fund Investments
Consider regular funds with the help of a Certified Financial Planner (CFP). Regular funds come with expert advice and monitoring. This ensures your investments stay aligned with your goals.
Review and Rebalance
Review your portfolio regularly. Rebalance it to maintain the desired asset allocation. This helps manage risk and improve returns.
Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They can provide a tailored financial plan. Professional guidance helps achieve your financial goals efficiently.
Final Insights
Increase your SIPs and diversify investments. Plan for children's education and maintain an emergency fund. Seek professional guidance for a comprehensive financial plan.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
