Financial Planning Queries

Can I achieve my financial goals with my current mutual fund investments

I am the regular follower and I think it has really the change the way I used to think before about investments. Initially I used to put money randomly in various funds but now started with Goal based investing as suggested in various articles. Continuing to that I tried to create the portfolio as per my goals. Please review it and let me know your feedback, suggestions on remapping etc. Child Education: 7 years from now: Current cost of goal is around 20 lacs. Active running SIP's for this Goal as following:- 1. Kotak Multicap: Current investment: Rs. 25000, SIP: Rs. 10000 (split in 4, 2500 each every month on various dates); 2. Mirae Emerging: Current investment: Rs. 492000, SIP: 10000 (3 sips on various dates); 3. Relaiance liquid fund: Current investment: Rs. 257000. In addition to above I have some investments done randomly quite back, so I tagged them to my sons education goal instead of closing them. 1. Aditya Birla hybrid 95 fund: Rs. 96000, 2. SBI Hybrid Fund : Rs. 60000, 3. Motilal Oswal Multicap 35 Fund: Rs. 50000. Also I have recurring deposit running for Child education tenure 5 years from now Amount is Rs. 10000 each month, maturity 7 Lacs after 5 years. Retirement Planning: more then 15 years from now. Goal Amount 2 CR. 1. Parag Parikh Long Term Equity: Current investment: Rs. 25000, SIP: Rs. 8000 (split in 2, 4000 SIPs every month on various dates); 2. L&T Emerging business Fund: Current investment: Rs. 75000, SIP: 8000 (split in 2, 4000 SIPs every month on various dates). In addition to above I have some investments done randomly quite back, so I tagged them to my sons education goal instead of closing them. 1. Reliance Small Cap: Rs. 1 Lac, 2. Mirae Tax Saver: Rs. 32000, 3. ICICI Banking & Financial Fund: Rs. 40000, 4. EPF current contribution: Rs. 8000 per month, planning to increase my contribution more on it. Current worth: 10 Lacs, also I have recently started adding Nifty and Junior Nifty ETF, current worth: Around 1 Lacs. I am adding them on every 3-5% dip. As far as liabilities are concerned, I don't have any kind of loans on me. Please expert review my portfolio, I am more concerned about Child education. Please provide your valuable feedback, any addition, substraction etc?

Aug 24, 2019 by Manish, Mumbai | Financial Planning

From your query we could find that you have two goals – 1) Child education after 7 years from now, the current cost of which is Rs 20 Lakhs 2) Goal amount of 2 Crores for your retirement but you have not... Read More

Where can I get a calculator for wedding planning

Your list of calculators is really impressive. However, one calculator that conspicuous by absence is Wedding Planner calculator. Please incorporate this as well?

Jul 23, 2019 by Himanshu Maheshwari, | Financial Planning

Thanks for your kind words and suggestions. We will surely add one Wedding Planning Calculator soon in our list of calculators. However, you can use this tool - Goal Setting Calculator... Read More

Where can I park my money for 10 months

I decided to sell my 2nd apartment at Rs 70 Lacks. I want to utilize this money after 10 months for buying another property. Please suggest a proper fund where I can get at least 8.5-9% return without any major market fluctuation?

Jul 20, 2019 by Amit Chakraborty, | Financial Planning

For very short term needs (in your case, around 10 months) you may park your money in Arbitrage Funds or Liquid Funds. However, your return expectation of 8.5-9% is quite high from this investment. You... Read More

Can I generate corpus for retirement from my mutual fund SIPs

This is second time I an writing to you for suggestions. I has been following this site and App. Thank you very much for educating for people like me on financial aspects. I have started SIP 9 months back with 60000. My aim is to generate some corpus for my retirement. I am 42 years old and continue my SIP 8 more years. My risk profile is modarate to aggressive. Please review my portfolio and share your comments. Here is the my portfolio, all are growth and direct funds - 1. SBI Bluechip - 7500, 2. Mirae Asset Opportunities - 7500, 3. ICICI Pru Value Discovery - 7500, 4. BSL Equity Fund - 7500, 5. DSP BlackRock Micro Cap - 5000, 6. Mirae Asset Emerging Bluechip - 5000, 7. HDFC Balanced Fund - 10000, 8. L&T Prudence Value Fund - 10000?

Jun 30, 2017 by Venkat, Bangalore | Financial Planning

Thanks for appreciating our work. Your portfolio mix indicates 90% equity and 10% debt asset allocation. This is a fairly aggressive asset allocation but it should work for you because you mentioned that you have... Read More

Have I started well for achieving my financial goals

I am 28 years, single, and have recently (2 months) started investing in mutual funds through SIP. My goals are at different stages of my life. In the next 4-5 years. I wish to buy a house worth 40 lacs (current price). I want to build a handsome corpus for my retirement and children education. My mother will be retiring in the next 5 years so after 5 years I wish to support my parents too. I currently have INR 7 lacs towards my education loan which I can pay in the next 4-5 years in instalment, no other loans. I have term insurance of 1 cr and health insurance too. I seek your advise in building my portfolio and check if my start is good and what all funds do I need to add in order to achieve my goal. House is my first preference in the next 5-6 years. My current investments are: Franklin India Smaller Companies Fund: INR 2500, Mirae Asset Emerging Bluechip Fund: INR 10000, L&T India Value Fund: INR 7500, ICICI Value Discovery Fund: INR 5000. I can invest INR 30-40 thousand more per month. Please advise me if my fund selection is good or not. Also, advise if more funds are needed to achieve my goal and further investment or I should just increase the amount of investment in the existing funds than adding more funds? Many thanks for all your help. I look forward to your reply?

Jun 15, 2017 by Neeraj Singh, Delhi | Financial Planning

We think you have made a good start by selecting top performing funds for your SIPs. You have two goals to meet after 5 years – 1) House worth Rs 40 Lakhs and 2) Support your parents financially. But you have... Read More

How to reach my various financial goals

I am 28 years of old and got married 6 months ago. Current financial status 1) Monthly Salary 43k, 2) Monthly Expenditure 20k, 3) Wife searching job, 4) I am alone child and parents still earning (will retire in 5-7yrs) Mother eligible for govt. pension, 5) no home loan currently, 6) Family health cover of 10lac (apart from my company's), 7) All my LIC and other insurance have cover of 15 lac. My SIP's 1) 1k UTI Retirement Benefit Pension Plan (since Dec. 2010), 2) 1k UTI ULIP (since Dec. 2010), 3) 2k ICICI Prudential Blue Chip (since Apr. 14) 4) 5k Reliance ELSS (5k Since Jan. 15), 5) 7k Reliance Money Manager (5k since Dec. 12, incremented by 2k from Sep 15), 6) 2k LIC Saving Fund (since Sep. 13), LIC insurance premium auto deducted from here, 7) Lump sum 1.15 lac in DSP Money Manager STP 2k weekly to DSP Micro cap (Will increase amount annually as I earn more and my wife starts job) Apart from this: 1) EPF As part of salary, 2. PPF 1 lac current total (I add as per tax needs) Old stopped SIP' (no redemption yet). 1) 1k L&T Opportunity Fund (Dec. 10 - Jan 14), 2) 1k HDFC Top 200 (May 11 - May 15). I have no urgent need of these yet and return is on 15+ side Goals 1) Early Retirement at 56 years (required 3cr.), 2. A car in 1yr (required 5-6lac.), 3. Child education after 25-27 years (required 40lac), 4) A small investment home in 5yrs (7-10lac for down payment) to help tax and earn rent, 5) A big fat family vacation (once every 3yrs. required 2 lac), 6) A STP to my parents monthly 10k after 11 years, 7) 1k charity per month after 1yr Questions Are my SIP' good and enough to full fill my goals? What to do with stopped SIP' amount. Should I transfer them or let be as is?

Jun 14, 2017 by Kanad Arvind Mehta, Pune | Financial Planning

You have a long list of goals, but we find that your investments are not well organised and invested in schemes/ products not performing well. But first let us see how much you need to save per month to reach... Read More

Can I achieve a goal of 1 Crore after 5 years by investing in SIPs

I am willing to invest in mutual fund. I will be doing a SIP of Rs 50,000 monthly & have created the following diversified portfolio - HDFC Balanced Fund(G): Rs 5000, Birla Sunlife Dynamic Bond: Rs 5000, Birla Sun Life Advantage Fund(G): Rs 8750, SBI Bluechip(G): Rs 8750, Franklin India Prima Fund(G): Rs 8750, Kotak Emerging Equity Fund: Rs 8750. My age is 25 years and target is to buy a home after 5 years worth 1 Crore. Please guide me with my investment portfolio?

Jun 1, 2017 by Shekhar Suman, Jamshedpur | Financial Planning

Glad to hear that you want to buy a home worth Rs 1 Crore after 5 years from your SIP corpus. Congratulations in advance! You have selected good funds for your monthly SIPs and excepting Birla Sun Life... Read More

How can I generate wealth for kid

I would like to start an investment/create a good corpus for my 1 month old baby. Can you please help with the appropriate MF / Child gift fund for long term wealth creation. At present, I am thinking of contributing 1.5 to 3 K specifically for this. Apart form this I already have SIPS in different schemes amounting to about 25K. Request you to please suggest appropriate method by which I can generate wealth for my baby?

May 18, 2017 by MGD, Mumbai | Financial Planning

Heartening to note that you are targeting wealth creation for your 1 month old baby. You are planning about the right goal at the right time - Congratulations! Please note that you should not consider any child... Read More

Can I reach my financial goals one by one

Hope you are keeping good. My query is little bit over-ambitious, but still I want to attain my financial goal. My query is, How much I should invest in which mutual funds so that I can attain atleast 10 lakhs for my sister's marriage in the next 5 years. Next goal: Close to 1.5 Crores for my daughters marriage after 25 years and 1 Crore for my retirement during the same period. I am naive in the MF scenario, my current investment is 3000 SIP in Axis Long Term ELSS which I stopped after 1 year, and will move to DSP Tax Saver, then 4000 in Birla sun life 96 ELSS, and 4000 in DSP BlackRock Micro Cap SIP, 10000 lump sum I invested in L&T Emerging Business Fund and I plan to invest lump sum of 3 lakhs in equal division of 1.5 lakh each in Mirrae Asset Emerging and L&T Emerging (both small and mid cap). Please let me know if I need to invest more and how much and in which funds to attain my goal one by one?

May 13, 2017 by Subham Dutta, Bangalore | Financial Planning

I am doing good and expect the same from you. Please have your queries answered as follows - You need to invest Rs 11,500 through monthly SIPs in a good diversified equity fund for 5 years for meeting... Read More

Should I invest bank OD amount into mutual funds

I have OverDraft (OD) based home loan (9.5%), I have excess money (40 Lakhs) in that account. As per my calculation, if I keep 40 Lakhs in OD for 10 years I will be saving 22.1 Lakhs, if I invest 40 Lakhs in mutual funds then I can earn compounding interest rate. so now I have questions: 1. Is my above understanding is correct? If yes then? 2. Since the market is at its peak so rather than doing lump sum investment in MF, I think to start putting 40 Lakhs in a good liquid fund and start STP / SIP from that to put into Equity Oriented Balanced Fund. I will plan STP/SIP in such a way that I flush up my liquid fund within 1.5 years. Is this a correct approach? 3. Even if I consider 11% CAGR return from above exercise with 10 years horizon then I would be making 73.57 Lakhs interest which is more than what I would be saving by paying OD account? 4. I have the adequate term plan to cover up the risk in case of death? 5. My age is 41, I have twins kid (11 years old), 11 Lakhs in PPF, already investing in MF (Monthly SIP of Rs 60,000), LIC policies (I am planning to close down as I am not getting good returns), I will invest LIC money into good balance fund. Not yet planned anything for retirement. This is to give you an idea about my risk apatite. I hope my question is clear enough. I would appreciate for an expert comment on this strategy?

May 5, 2017 by Jay, India | Financial Planning

Theoretically, your plan sounds good as you have compared the OD interest rates which may be lower compared to the future gain that you could make by investing in equity mutual funds. But coming to the... Read More