Dear Sreekanth,
Thanks a lot for your blogs. I used to read your articles and they are quite good and informative to people like me. I am a 42 yr old NRI working in Middle East . I am the only earning member for my family. I have investments as property , equity, MF and bank deposits like RD and FD. I also have a term assurance and medical insurance for my family.
My future needs for investment is to address the education expenses of my kids who are 13 and 9 years and also for my post retirement life... How should I plan my further investments, like what way should I allocate my savings in to mutual funds , equities and bank deposits or into any other options if available so that my portfolio will be balanced considering the risks and returns. I am willing to take moderate to high risks in investment.
I would also like to know your opinion about PMS.. How do you compare long term investments in quality mutual funds with PMS taking into account the relatively heavy service charges for a PMS. Kindly advise...
I have some questions regarding mutual funds and shall post it separately under the funds category..
Thanks in advance..
3 Answers
Hi,
Thank you for following my blogs!
Kids' Education goals:
Elder Kid - You have around 4 to 5 years time-line to provide for higher education. So, you may consider investing in balanced funds for next 2 to 3 years and then switch back to safer investment avenues.
Younger one - You have time-frame of around 7 to 8 years from now. You can afford to take a big higher risk. So, you may consider Diversified equity funds & balanced funds.
May I know your expected Retirement age?
PMS can be much more than just MF investments. They charge higher fee for creating a customized financial plans, to execute and monitor the portfolio. They can offer Estate planning services too.
Personally, I believe that if you have some time to spend, we ourselves can maintain a simple portfolio and track it.
Kindly read:
http://www.relakhs.com/personal-financial-planning-articles-list/
Dear Sreekanth,
Thank you very much for your prompt response. Went through the article you suggested to read..and that was excellent.
As mentioned before I have some mutual fund investments...Unfortunately the list is a bit long. I had recently read your article on portfolio overlap. Could you please help me to cut down my MF list? I would like to know your picks among these.. These are the funds that I have currently-
L&T prudence India fund
DSP BR Microcap fund
Birla SL Frontline Equity Fund
Birla SL Top 100 fund
Franklin India unique opportunities fund
Franklin India High growth companies fund
Franklin India Smaller companies fund
Franklin India Prima plus
Kotak select focus fund and
ICICI value discovery fund.
All these investments are less than an year old. The total fund value comes to nearly 30 lakhs and as of now I would be able invest about 2-3 lakhs per month.
In fact I was too late in investing in funds and my initial investments were in properties. I had read your articles on best funds in each categories which were very informative. Should I include one MIP in my portfolio? Which fund should I choose to park emergency funds-? Of course I have some investment as FD and RD for emergencies.
Thank you once again and really appreciate your efforts and help
Best Regards
Pradeep
Hi,
1 - Kindly consider buying a Disability cover (Personal accident insurance plan), as you are the only earning member of your family.
2 - Almost all the funds are good ones. But it may not be really beneficial to have too many funds that too from the same fund category. Suggest you to trim down your portfolio. Kindly read below articles;
http://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
http://www.relakhs.com/mutual-fund-categories-market-capitalization-large-cap-vs-mid-cap-vs-small-cap-funds/
3 - Why would you like to include MIP?
4 - Liquid funds & Arbitrage funds can be added to Emergency Fund portfolio. Read:
http://www.relakhs.com/best-arbitrage-funds-returns/
http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
5 - Kindly invest as much as possible and as frequently as possible in Equity Funds , for your Retirement goal.
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