Getty ImagesI am a 28-year-old salaried employee. My risk profile is high-risk, high-return. My SIP portfolio is below:
Aditya Birla Sun Life Small Cap Fund: Rs 2,000
Aditya Birla Sun Life Banking & Financial Services Fund: Rs 3,000
Aditya Birla Sun Life Tax Relief 96: Rs 3,000
DSP Tax Saver Fund: Rs 3,000
L&T Emerging Businesses Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
My goal is to build enough corpus for home, retirement, car, and children’s marriage and education. Could you please review my portfolio and let me know in case of any changes required? I appreciate your help and support.
-Aritra
If you take high risk, it is not necessary that you will always get high returns. There would be periods of large losses and extreme volatility. That is why you should always look at your risk-taking ability and risk appetite in life. If you have your finances and insurance covers in place, you have the ability to take risk. However, if you have huge liabilities and your finances are not in order, you do not have the risk-taking ability. Also, what is your mental make up? Can you live with a lot of volatility and huge swings in returns? If yes, you have a large risk appetite or aggressive risk profile. If you prefer steady returns and you can't handle volatility, you may be conservative or moderate risk-taker. You should always choose your mutual funds based on your risk profile.
You have listed several financial goals, both medium and long-term goals. However, you will have to adopt a goal-based investing to achieve these goals. First, find out the current cost to achieve them. Next, account for annual inflation to find out the target corpus needed to achieve those goals. Once you know the realistic target, you can find out how much you need to invest every month. For more, read: DIY Mutual Fund Tools: SIP Calculator in excel
You are currently investing in two tax saving schemes, two small cap schemes, thematic scheme, and large & mid cap scheme. You have chosen good performers, but ensure they are in line with your risk profile.
Aditya Birla Sun Life Small Cap Fund: Rs 2,000
Aditya Birla Sun Life Banking & Financial Services Fund: Rs 3,000
Aditya Birla Sun Life Tax Relief 96: Rs 3,000
DSP Tax Saver Fund: Rs 3,000
L&T Emerging Businesses Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
My goal is to build enough corpus for home, retirement, car, and children’s marriage and education. Could you please review my portfolio and let me know in case of any changes required? I appreciate your help and support.
-Aritra
If you take high risk, it is not necessary that you will always get high returns. There would be periods of large losses and extreme volatility. That is why you should always look at your risk-taking ability and risk appetite in life. If you have your finances and insurance covers in place, you have the ability to take risk. However, if you have huge liabilities and your finances are not in order, you do not have the risk-taking ability. Also, what is your mental make up? Can you live with a lot of volatility and huge swings in returns? If yes, you have a large risk appetite or aggressive risk profile. If you prefer steady returns and you can't handle volatility, you may be conservative or moderate risk-taker. You should always choose your mutual funds based on your risk profile.
You have listed several financial goals, both medium and long-term goals. However, you will have to adopt a goal-based investing to achieve these goals. First, find out the current cost to achieve them. Next, account for annual inflation to find out the target corpus needed to achieve those goals. Once you know the realistic target, you can find out how much you need to invest every month. For more, read: DIY Mutual Fund Tools: SIP Calculator in excel
You are currently investing in two tax saving schemes, two small cap schemes, thematic scheme, and large & mid cap scheme. You have chosen good performers, but ensure they are in line with your risk profile.
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