I am 26 years old female, married with no kids working in IT. I have been investing in MF since a year now and would like to get it reviewed.
My current investment in MF is 2,12,000 and has a monthly sip of 11,000. All plans are direct and growth. Sip structure is as below.
I also have gold assets worth around 15 lakhs. My monthly income is around 57k after income tax and EPF and VPF deduction.
It is nice to see youngsters taking interest in managing their money and learning from the very beginning.
It is a very good start, maintain the discipline.
Few tips for fine tuning.
I went through your question and investments made by you. And to me it looked something like this :
Everything good, in its own right and yet you don’t know where it all starts and finishes. So I am going to give you an alternative, which is this :
So we are going to peel things, one at a time.
This first objective is to have an emergency fund. I wish to congratulate you on it, this is a good step in the right direction. However, I am not sure as to when an emergency can strike, and I believe so are you, hence the need for the fund, in the first place. So don’t you think it would be better to set out on this goal and get it taken care of and put things to rest.
Think about it, on one hand you have a market that already at expensive valuations (Nifty P/E in 2008, before the crash was at 28.25, today it is at 29.49) and you are investing into Equity based funds. Given you also have mid and small caps, but bulk of your investments I suspect is in large caps, which Nifty is representative of.
So contrarian as I may sound, it pays to exert caution. You are young and would get ample opportunities ahead to participate in equity markets.
The second point you make is of wanting to save a million. I am not sure whether you mean accumulate a million, or save a million, and whether you mean a million rupees or a million dollars, and whether you are looking at reaching this figure of a million by investing in Dynamic Bond Fund alone, or through a mix of assets and dynamic bond fund happens to be one of them.
Assuming you are taking of accumulating in Indian Rupee terms, via Dynamic Bond Fund alone, you would need a miracle to reach the magic number in 5 years, if things continue at the current run rate of 2000 per month.
And the last objective you mention is of retirement. It gives me so much happiness to read this. Not the amount you are targeting but the sheer fact that you are thinking in terms of retirement at the age of 26, congratulations on it, take a bow.
The retirement corpus is quite small frankly, I am afraid it would not provide much sustenance into your blissful sunset years. You need to rework that.
All in all in my opinion you need a good financial planning consult, who can better guide you with your investment plans.
But heartiest congratulations once again on making an early start, wishing you all the very best for your investments.
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This is not an answer to your question, but a suggestion.
It is difficult to do a detailed review in a single Q&A. The answers posted over here will provide you with some guidance. In our opinion a detailed review by a planner will provide a better personalised solution after further interaction. Like all good things in life it will cost you some money (Rs 15,000 on an average. Varies from advisor to advisor).
Sachin Shah is a 30 year old Senior Software Engineer, working at an IT services company in Bengaluru. He and his wife want to plan for their retirement and also want to save for their child's education, wedding and for buying a car.View Case Study