Dear Shree.,
Its once again KK here ,, after long time iam back to Q & A forum ,,,my last question to you is around Sept 2016 on my portfolio formation. Thanks for your immense support provided by you to me. All these months i was making my investments as per your advice.
I have identified my 3 major goals with time frame , amount ( Present & Future value ), Inflation rate, Expected rate of return. I have also used calculators for retirement, Kids education & Portfolio overlap tools keeping limit not exceeding 50%
Goal 1-Kids education 12 yrs to go - Present value 10 lakhs- Future Value 30 lakhs approximate ( taken inflation @ 10% expected return @13%)
My Investments for goal 1 ( INR 850,000 fully invested as of date )
ICICI Top 100- 3 Lakhs
ICICI Pru Value DIscovery- 1 Lakhs
ICICI Pru Balanced Advantage- 50 k
HDFC Mid cap Oppurtunities- 2 Lakhs
FI Smaller Companies- 2 Lakhs
Goal 2-Kids MArriage 17 yrs to go - Present value 30 lakhs- Future Value 1.3 Crore approximate ( taken inflation @ 8% expected return @13%)
My Investments for goal 2 ( INR 5 lakhs presently invested , planning to invest 8 lakhs more in 2018)
BSL Frontline Equity- 3 Lakhs
BSL Advantage Fund- 1.2 Lakhs ( Plan to invest 2 lakshs more during 2018)
HDFC BAlanced Fund - 67 k
L & T India Value Fund - 2.5 Lakhs ( Plan to invest during 2018)
Reliance Small Cap- 3 lakhs ( Plan to invest during 2018)
Goal 3- Retirement 22 yrs to go - Required Corpus 2 crore ( taken inflation @ 9% expected return @13.5%)
My Investments for goal 3 ( INR 7 lakhs-invested , planning to invest 3 lakhs more during 2018 )
Frankin India Blue Chip - 4 Lakhs
Frankin India High Growth 1.5 Lakhs
Birla SL Balanced 95 ' - 1.13 Lakhs
Mirea Asset Emerging BlueChip/ Franklin India Prima - 3.5 Lakhs ( Plan to invest during 2018)
Even though funds are more i have managing independently accordingly for the goals.My overall portfolio % is
Present Future ( ie., end of 2018)
Large Cap 50% 32%
Multicap 18% 23%
Balanced 10% 10%
Mid cap 10% 20%
Small Cap 11% 18%
Since the goals are long term, as you suggested me kept little in aggressive mode.
Kindly review and give your feedback on my positions and future placements.
Regards
KK
3 Answers
Dear KK,
How have you been? Trust all is well!
Suggest you to expect lower returns and then plan your investments, may be it is advisable to expect less, save more and reach the target amounts :)
You may like reading my latest article @
https://www.relakhs.com/personal-financial-planning-principles/
Education inflation as quoted by you is on the higher side (especially in major cities) when compared to normal Consumption inflation rate..
I follow one portfolio for multiple goals approach. But, there is no right and wrong approach..
Your MF portfolios are good. Do track their portfolio overlaps once in a while.
38 to 40% allocation to mid/small cap funds for long-term stocks sounds ok to me.
Thanks Sree..
Sure i will increase my investments all that i mentioned are my plans for 2018.
Education inflation shall i keep @ 10% or shall i reduce it.,I noticed some where in the blog / kids education calculator it was mentioned to keep at higher side..that it will be always higher compared with others..
With respect to return expectation between 13- 13.5 % because all my goals are more than 10 years, shall i keep it between 10 -12 %...which will increase my investments :(
Regards
KK
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