Feedback and advise for MF Portfolio for short and long term goals

Q & A Forum › Category: Financial Planning › Feedback and advise for MF Portfolio for short and long term goals

joy asked 9 years ago

Sir, The words super, great, wonderful not enough to appreciate your service.Realy this site giving knowledge that making future safe.so thanks from heart. Am NRI, 27 year age. My Financial Plans are,

Buying House -40 lk (5yr) (Short term)
Business Capital -50lk (11yr) (Medium term)
Children Marriage -1cr (20yr ) (Long Term)
Retirement Plan-5cr (30yr ) (Long Term)

So my question is I have to maintain different portfolio’s according to my goals because from my understandings for this corpse at least I need 80k-1lk per month. That I can’t now.so I thought first I will invest for my short term goal (1) and meanwhile for second goal.after 5 year I plan to continue for my others goals gradually. Hence for Short term I choose debt funds. For 1 goal (short term-5yr) (some equity funds for 2-goal)

L&T Ultra Short Term (Debt)-10k
Birla Sun life Short-term fund (Debt)-10k
SBI Magnum Gilt Fund (Debt)-10k
Franklin India Prima plus (Diversified) -2k (for 2nd Goal (10yr)
Birla Sun life Frontline Equity Fund (Large)-1.5k-(for 2nd Goal (10yr)
HDFC Balanced -1.5k-(for 2nd Goal (10yr)

Total Sip=35/month After 5year (rest of goals –long term)

Franklin India Prima plus (Diversified) -5k
Birla Sun life Frontline Equity Fund (Large)-10k
HDFC Balanced -10k
Franklin India Smaller Companies Fund (Small)-10k
Mirae Asset India Opportunities Fund (Diversified) -5k
Birla Sun life Short-term fund (Debt)-10k

Total Sip=50/month Gradually depend upon my future growth I will increase sip on large and Balanced funds. For assets allocation I remain invest in debt.is it asset allocation right or I need to invest more in debt (age 27)? So please advise is this portfolio and plan will help to achieve my goal?

6 Answers

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Sreekanth Staff answered 9 years ago

Hi, Based on the above details, I believe that you may prioritize your goals first. Retirement planning & Kid's Education/Marriage goals can be given very high priority. Then, you may plan your savings (allocate investible surplus) for building capital (for business). If you believe that you do not have enough investible surplus after accommodating for above goals, may be it is wiser to postpone home buying (if you also think so). Suggested readings : https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/calculate-kids-education-goal-amount/ https://www.relakhs.com/best-mutual-fund-schemes-2017/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/

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Sreekanth Staff answered 9 years ago

Thank you for the appreciation and kind words!

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joy answered 9 years ago

Thanks for quick reply and valuable advice. Regarding my business capital , it already on going (Agro industry) so after 10 yr i need for expanding it. Hence if business capital achieve then it will help kids and retirement plan easy to make.Buying house is mandatory in five years. so based on my true needs planned like that. so can you please give your feedback on my selected funds for my plan.is it achievable?

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Sreekanth Staff answered 9 years ago

Hi, Short term goal : May be you can have a small allocation to an MIP Fund or balanced fund even for a first 5 year term. (if you would like to take a bit more risk). For calculations, kindly refer to my earlier suggested articles. Suggested readings; https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/

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joy answered 9 years ago

Thanks and agreed so i choose funds .for short term

L&T Ultra Short Term (Debt)-10k
SBI Magnum Gilt Fund (Debt)-10k
Birla Sun life MIP II Wealth 25 Plan-10k
HDFC Balanced -5k

1. is it ok for short term ? For long term :

Franklin India Prima plus (Diversified) -5k
Birla Sun life Frontline Equity Fund (Large)-10k
HDFC Balanced -10k
Franklin India Smaller Companies Fund (Small)-10k
Mirae Asset India Opportunities Fund (Diversified) -5k
Birla Sun life Short-term fund (Debt)-10k

Total Sip=50/month 2.shall i proceed with this asset allocation for long term? 3.i have to add one more debt fund?

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Sreekanth Staff answered 9 years ago

Hi, Short term portfolio looks fine. Long term portfolio - May be you can consider a Dynamic bond fund than a Short term debt fund.