I am having 46lakh mutual fund and monthly investment is 22k, I wanted 2cr in next 3year. What else I can do to achive that also I have share of 13lakh. And running two home loan one is 25lakh and another is 48lakh
Ans: Current Financial Position
Mutual Fund Investments: Rs 46 lakh
Monthly Investment: Rs 22,000
Share Investments: Rs 13 lakh
Home Loans: Rs 25 lakh and Rs 48 lakh
You aim to accumulate Rs 2 crore in 3 years.
Let's analyze and suggest a strategy to achieve this goal.
Assessing the Goal
Aggressive Goal
Your goal is ambitious. Achieving Rs 2 crore in 3 years will require a high growth rate.
Current Investments
You are investing in mutual funds and shares. This is good but may not be sufficient for your goal.
Investment Strategy
Increase Monthly Investments
Consider increasing your monthly investment. Even small increases can significantly impact over time.
Focus on Equity Funds
Actively managed equity funds can offer high returns. Fund managers can outperform the market, unlike index funds.
Balanced Funds
Balanced funds provide a mix of equity and debt. This can offer stability and growth.
Avoid Index Funds
Index funds are passively managed. They cannot outperform the market. Actively managed funds, with professional oversight, aim to exceed market returns.
Avoid Direct Funds
Direct funds might have lower fees. But investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential can provide professional guidance. This can lead to better fund selection and higher returns.
Systematic Investment Plan (SIP)
Set up SIPs for regular investments. SIPs help in averaging out market volatility. They ensure disciplined and consistent investing.
Debt Management
Home Loans
You have two home loans. Consider refinancing to reduce interest rates. Pay extra towards higher interest loan if possible.
Emergency Fund
Maintain an emergency fund. This should cover at least 6 months of expenses. It's essential for financial security and to avoid liquidating investments prematurely.
Diversification and Regular Review
Diversify Portfolio
Diversify your portfolio across different asset classes. This reduces risk and increases potential returns.
Regular Review
Review your portfolio regularly. Make adjustments based on market conditions and your goals.
Seek Professional Guidance
Consult a Certified Financial Planner (CFP) for personalized advice. They can help design a strategy tailored to your financial goals and risk tolerance.
Final Insights
Achieving Rs 2 crore in 3 years is challenging but possible.
Increase your monthly investments and focus on equity and balanced funds. Avoid index and direct funds for better returns.
Maintain an emergency fund and consider SIPs. Manage your home loans wisely. Seek professional guidance for a well-rounded investment strategy.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
