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Anonymous: Hi, my monthly take-home is Rs 2.2 lakh and as of now I have Rs 20 lakh invested in FD, RD, and debt funds; Rs 18 lakh in direct equity; Rs 7 lakh in equity mutual funds; and Rs 61 lakh together in PF, PPF, and NPS. I own a flat with an EMI of Rs 51,000.
For the last few months, I have been investing around Rs 56,000 in SIPs and paying an additional Rs 20,000 (total EMI payment of Rs 71,000) to close the loan earlier. I have additional monthly savings of Rs 15,000-Rs 20,000 which I want to invest.
I also want to move some of my FD/RD/debt investments into higher-return options like newly launched SIFs. What is your take and suggestion on this?
Your portfolio is largely invested in FD, RD, debt funds, PF, and PPF -- about 65%-70% -- with the rest in equity MFs and direct equities. Details of NPS and SIP schemes are not provided.
However, your financial management discipline is commendable. You can certainly plan for additional monthly investments. SIFs are being launched only by a few mutual fund houses as of now. They are inherently riskier than normal mutual funds, though risk depends on the SIF's investment strategy.
The minimum investment in SIFs is Rs 10 lakh and they are meant for HNIs and accredited investors. Please consult your investment advisor in this regard.
Anonymous: In which fund can Rs 8 lakh be invested over 6 months to get maximum interest?
One can earn interest through bank FDs, post office deposits, government schemes, bonds, and company FDs. Compare the interest rates and take a decision. Also check bond ratings and the credibility of companies offering FDs.
If your risk profile allows, you may invest in equity mutual funds, but then your investment horizon should be at least 5 to 10 years.
Anonymous: I have a passive income of Rs 40,000, but my expenses are much higher. I am retired now. I have mutual funds worth Rs 10 lakh and expect an LIC maturity of approximately Rs 32 lakh in 2027.
With the given information, a Systematic Withdrawal Plan (SWP) can be implemented in your existing MF schemes, say Rs 5,000 per month, assuming a reasonable return on equity MFs.
After two years, when you receive around Rs 32 lakh, an additional SWP can supplement your passive income. However, you need to rationalise your expenses so that your investment corpus does not fall short.
Anonymous: Dear Sir, please review my portfolio. Time horizon: mid-term, 5-10 years. My age is 50 years. Current monthly SIPs:
- Nippon India Large Cap Fund Direct - Rs 1,500
- ICICI Bharat 22 FOF G Large Cap Direct - Rs 5,000
- Motilal Oswal Midcap Direct - Rs 5,000
- Parag Parikh Flexi Cap Direct - Rs 1,500
- Bandhan Small Cap Direct - Rs 5,000
- Nippon India Small Cap - Rs 2,000
Apart from this, I invested Rs 2.15 lakh in ICICI ELSS Tax Saver Growth Fund Regular (SIP stopped) and Rs 25,000 in SBI Retirement Benefit Fund Regular (SIP stopped). I need to build Rs 50 lakh for my 14-year-old son and graduate daughter over the next 5 years. Please advise on any changes or additions.
After reviewing your portfolio, I find it a good selection of mutual fund schemes. Over a 10-year accumulation period, you are expected to build a corpus of Rs 50 lakh or more.
However, if you want to realise Rs 50 lakh within the next 5 years, you may need to add an additional SIP of about Rs 25,000 per month in a high-risk small cap fund.
If your SIPs started 3 years ago, then reaching Rs 50 lakh in the next 5 years may be feasible without new investments. Before funds are needed for your children's education, it would be better to shift 1-2 years earlier into a good hybrid or debt fund.
Also, get your portfolio reviewed periodically during the accumulation period.
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Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
