I am 44 years old I am investing Quant focussed (4k) quant large and midcap (6k), Quant multi asset(4k) Quant large cap(3k) Quant elss (3k) and Quant liquid (25k) and PGIM Midcap opp (3K); so far I have a corpus of 22L; How i can re-shuffle my investments to get best out of it. Im planning to retire in next 12 years; I have to pay off my liabilities of around 1 cr and take care of my daughter's education and my retirement. How much more should I invest to retire after paying my liabilities with a monthly income of 1 L
Ans: Your current investments and savings are commendable. Let's refine your strategy to ensure a secure retirement while meeting your financial goals.
Current Financial Snapshot
Investments:
Quant Focussed: Rs 4,000/month
Quant Large and Midcap: Rs 6,000/month
Quant Multi Asset: Rs 4,000/month
Quant Large Cap: Rs 3,000/month
Quant ELSS: Rs 3,000/month
Quant Liquid: Rs 25,000/month
PGIM Midcap Opp: Rs 3,000/month
Corpus: Rs 22 lakh
Financial Goals
Retire in 12 years
Monthly income of Rs 1 lakh post-retirement
Pay off liabilities of Rs 1 crore
Fund daughter's education
Analysis and Insights
Current Investments:
Your investments are diversified but heavily weighted towards one fund house.
Liquid funds are over-represented, leading to lower potential growth.
Investment Strategy
Rebalance Portfolio:
Diversify across different fund houses.
Reduce liquid fund allocation; focus more on growth-oriented funds.
Equity Funds:
Increase allocation to equity funds for higher returns.
Include large-cap, mid-cap, and multi-cap funds.
Debt Funds:
Maintain a portion in debt funds for stability.
These provide a safety net and regular returns.
Recommended Asset Allocation
Equity:
Allocate 60-70% to equity mutual funds.
Diversify across large-cap, mid-cap, and multi-cap funds.
Debt:
Allocate 20-30% to debt funds.
Ensure a balance between growth and safety.
Liquid Funds:
Reduce to 10% for short-term needs.
Steps to Achieve Financial Goals
1. Pay Off Liabilities:
Prioritize paying off Rs 1 crore liability.
Use a portion of your corpus and monthly savings.
2. Fund Daughter's Education:
Estimate the required corpus.
Start an SIP in an education-specific mutual fund.
3. Retirement Corpus:
Aim for a retirement corpus of Rs 3-4 crore.
Increase SIP contributions gradually.
4. Regular Review:
Review investments quarterly.
Adjust based on market conditions and goals.
Monthly SIP Contribution
Current SIP: Rs 48,000/month
Suggested Increase: 10-15% annually
Target: Rs 1-1.2 lakh/month over the next 5-7 years
Final Insights
Disciplined Approach: Stay committed to your investment plan.
Diversification: Spread investments across different asset classes.
Review and Adjust: Monitor and rebalance your portfolio regularly.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
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