I am 35 Year Old and take Home salary is 3.50Lakhs per month.
Started Investing 3 months back, having SIP profile below with clear 15 Years Investment Horizon. Please advise me on my Current Portfolio. Does it require any change by adding or removing fund? My plan is to Stay Invested for a longer period & the motive is Wealth creation over a period of time.
My Risk appetite is Moderate to high. Asset Allocation (Equity:Debt) 70:30
LUMPSUM (3years Horizon)
Kotak Corporate Bond Direct 25Lakh
SBI Magnum Gilt Fund Direct 25Lakh
Franklin India Low Duration Fund Direct 25Lakh
SBI Magnum Income Direct Plan Direct 25Lakh
S I P(Monthly)
SBI Bluechip Fund Direct 13000/-
Aditya Birla Sun Life Frontline Equity Fund Direct 13000/-
Mirae Emerging Bluechip Direct 13000/-
L&T Midcap Fund Direct 13000/-
Franklin India Smaller Company 13000/-
HDFC Balanced Fund Direct 13000/-
L&T India Value fund Direct 13000/-
Tata India Tax Savings Fund Direct 11000/-
Total Monthly SIP 100000/-
Suknya S.Yojna 1.5L Per Annum (since last 3 years)
PPF 1.5L Per Annum (since last 6 years)
NPS 120000 Per Annum (since last 6 years)
Mediclaim Annual Premium 15000/-
NFO ETF value worth Rs 100000
Contingency amount 500000 in Liquid Fund
I am in position to invest another surplus monthly amount worth 200000 with 3 Year horizon keeping in mind. Please guide me for how to utilize this portion as well.
I currently do not have any debt upon me. Hence looking for an opinion whether I should increase my SIP / exit or invest in any others that would probably be more preferable then any of the above.
If you are investing full Rs 1.5 Lakh in Sukanya a/c, u/s 80c you can claim this tax deduction.
So, investing in an ELSS fund can be avoided.
All the listed Equity funds are good ones.
May I know if your asset allocation of 70:30 is it for long-term?
For additional investments, for a 3 year time-frame, you may invest in your existing debt funds itself. For ex : Franklin low duration fund.
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Thanks for your reply. Yes, Asset allocation of 70:30 is for long-term (15 Years).
SSY seems political motivated and I am not sure about their constant interest rates in future. So on safer side I intentionally investing in ELSS. I assume my portfolio looks crowded and some unnecessary funds should be omitted.
I am planning to keep 2 in Large Cap and 1 each in Mid, Small, Balanced, ELSS & Diversified Fund or you please advice which fund should I omit to keep balanced portfolio. For Additional monthly Investment(Lumpsum) I will go with short term gilt or ultra short term debt fund. Can you please advice for funds here?
Kindly note that the interest rates of SSY are now market-linked. Even if there is a change in the govt, the existing account holders will still get the market linked rate of interest.. Nevertheless, elss is a one of the best tax saving long term product.
You may kindly go through the suggested article on ‘Portfolio overlap’ and trim down your portfolio if overlap between two funds is say more than 50% or so.
For example : You have two large cap, two mid/small cap funds, ELSS can also be considered as a multi-cap fund – so check the overlap among these funds and can trim down your portfolio a bit. Also, refer to my article on ‘how to select the right schemes based on risk ratios.’
But, individually all the mentioned equity funds are good ones.
Do you have any specific goal for short term? (for investing in Gilt/ultra short term debt funds)
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