I want to invest 2L as monthly SIP for nxt 10 yrs. Im currently investing 1.25L in 10 SIPs through regular mode. Want to reduce my SIPs and also increase it to 2L.
I am an aggressive person and dont mind investing in high risk/ thematic funds
Ans: You plan to invest Rs 2 lakhs as a monthly SIP for the next 10 years.
You currently invest Rs 1.25 lakhs in 10 SIPs through the regular mode.
You want to reduce the number of SIPs and increase your investment to Rs 2 lakhs.
You have an aggressive risk profile and are open to high-risk investments.
Evaluating Your Current Investment Strategy
You invest Rs 1.25 lakhs in 10 SIPs, which is diverse.
However, managing 10 SIPs can be complex and time-consuming.
Streamlining your SIPs can improve focus and management.
Increasing your SIP amount will significantly boost your investment corpus over time.
Recommendations for an Aggressive Investor
Equity Mutual Funds:
Focus on equity mutual funds for high returns over the long term.
Opt for diversified equity funds to spread risk.
Thematic Funds:
Consider thematic funds based on sectors you believe will perform well.
These funds can offer higher returns but come with higher risks.
Small-Cap and Mid-Cap Funds:
Small-cap and mid-cap funds can provide substantial growth.
These funds are more volatile but can be rewarding in a growing market.
Benefits of Regular Funds Through a Certified Financial Planner
Professional Management:
Regular funds through a CFP offer expert fund management.
A CFP can guide you in fund selection based on your risk profile.
Regular Monitoring:
Regular funds come with periodic reviews and adjustments.
This ensures your investments stay aligned with your goals.
Cost-Effective:
Although direct funds have lower expense ratios, regular funds provide better value through professional advice.
A CFP helps optimize your portfolio, potentially offsetting higher costs.
Streamlining Your SIPs
Consolidate SIPs:
Reduce your SIPs from 10 to a manageable number, like 5-6.
This simplifies management while maintaining diversification.
Increase SIP Amounts:
Distribute the Rs 2 lakhs across these 5-6 SIPs.
This approach maintains diversification and increases potential returns.
Rebalance Portfolio:
Periodically review and rebalance your portfolio.
This ensures alignment with your financial goals and risk tolerance.
High-Risk Investments
Sectoral Funds:
Sectoral funds focus on specific industries like technology or pharmaceuticals.
These can provide high returns if the sector performs well.
International Funds:
Invest in international funds to diversify globally.
These funds can reduce country-specific risks and tap into global growth.
Final Insights
Your plan to increase your SIP to Rs 2 lakhs is commendable.
Streamlining your SIPs will simplify management.
Opt for equity, thematic, and sectoral funds for higher returns.
Work with a Certified Financial Planner to optimize your investments.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
