Raghavendra, Bengaluru firstname.lastname@example.org
I am 39 years old. My monthly income is Rs 32,000, and my monthly expense is Rs 18,000. I would request you to advice on the funds I can add to my portfolio. My investments are in ICICI Bluechip Regular Growth 2000-2030 for children’s education, SBI Focused Equity Regular Growth 3000-2031 and ICICI Pru Equity & Debt Regular Growth 3000-2030. Also, please suggest a retirement plan with a 20 years horizon.
Investments in equity mutual funds are always for the long term, depending on your goals and risk tolerance. The information given here is not sufficient to suggest any change. It should be reviewed yearly or every two to three years, depending upon the goal term. All funds in your portfolio have performed fairly well in the past. However, one should be aware of the risk versus return matrix of a fund compared to its peers and benchmarks. If you have been investing in this fund for more than three to five years, and its growth is not in line with your required rate of return, then it needs to change.
After considering the same expense and your retirement age (as per calculation), your first-month retirement expenses would be Rs 90,600 at an average 8 per cent inflation. Your return on investment will be 12 per cent. In that case, you have to start investing with Rs 11,200 per month in diversified equity mutual funds with some exposure in the multi-cap fund. Since you have 20 years, you can also consider a mix of mid and small-cap funds. But keep in mind the risks versus returns matrix of the funds and simultaneously keep increasing your SIP (10 per cent every year) to accumulate a sufficient retirement kitty. Get in touch with a certified financial planner for customised planning and review.
Hina Shah, Certified Financial PlannerCM & Coach, LUHEM