I am 35 now. Need to invest for my 1-year-old son's future. Have been Investing in the following SIP ( all direct plans with Rs 3000 each) 1.Parag Parikh Flexi Cap Dir-G (since Mar 2023) 2.SBI Bluechip Dir-G (since Mar 2022) 3. ICICI Prudential Balanced Advantage Fund (since Mar 2022) Apart from this I regularly invest in PPF (50K per year) and ELSS (50k per year) 1. Are these funds ok? 2. Should I invest in any other SIPs? 3. Will this be enough?
Ans: Dear Ranjith,
Thank you for sharing your current investments and seeking advice for your son's future. It's commendable that you are planning ahead and considering multiple investment avenues. As a financial advisor, I'll provide some guidance based on your questions.
Are these funds ok?
The funds you've mentioned, i.e., Parag Parikh Flexi Cap, SBI Bluechip, and ICICI Prudential Balanced Advantage Fund, are well-regarded in their respective categories. They have a history of consistent performance, and investing in them through SIPs can be a good strategy. However, remember that past performance does not guarantee future results, and it's essential to periodically review your investments.
Should I invest in any other SIPs?
Diversification is crucial in managing risk, so you could consider adding one or two more SIPs to your portfolio. You might want to look at a mid-cap or small-cap fund to complement your existing investments. Additionally, you can explore short duration debt funds if you wish to be risk averse.
Will this be enough?
It's difficult to predict whether your current investments will be sufficient without knowing your son's future financial needs and the time horizon for your goals (e.g., higher education or marriage). It's a good idea to estimate the amount you'll need in the future, taking inflation into account. Then, you can calculate the required monthly investment using online calculators or seeking professional advice.
Keep in mind that it's essential to periodically review and adjust your investments based on changes in the market and your financial goals. Also, consider creating an emergency fund to cover unforeseen expenses and protect your investments.
In conclusion, your existing investments seem to be on the right track. However, it's crucial to diversify your portfolio further, assess your financial goals, and regularly review your investments. You might want to consult a certified financial planner for personalized advice tailored to your specific situation.
Best wishes for a bright and secure future for your son!
Warm regards,
