Investment Strategy Request

[drvenkat]

Hello Technofino members,

I am posting here today seeking your expert advice on developing a comprehensive investment strategy. I have been following your work for some time and greatly admire your insights on personal finance and investing.

I am 36 years old and have the following financial situation:

• Savings Account: ₹7 lakhs currently in my salary account.
• ELSS Mutual Funds: ₹3.2 lakhs invested in ELSS funds.
• Union Bank of India Shares: 1700 shares.
• Pending Dues: ₹4 lakhs owed to me by friends (I understand these are not liquid investments in the traditional sense but wanted to provide a complete picture).
• Monthly Expenses: Less than ₹10,000 for the next 8 months.
• Net Monthly Salary: ₹1,00,000.
• Investment Horizon: More than 20 years.
• Investment Plan: I intend to invest the remaining amount of my salary after expenses for the next 8 months. Following that, I plan to invest a minimum of ₹60,000 per month consistently.

I have a moderate risk tolerance and am looking to build a diversified portfolio for long-term financial growth, primarily focusing on retirement planning and other long-term goals. My primary goal is to maximize returns while managing risk effectively over my 20+ year horizon.

I would be grateful if you could provide me with a suggested asset allocation strategy, considering all my assets, including the ELSS funds and Union Bank shares, and allocating appropriately across different asset classes such as equity and debt. Furthermore, I would appreciate your recommendations on specific mutual funds within each asset class that you believe would be suitable for my profile, investment goals, and long-term horizon. I am particularly interested in your views on:

• Large-Cap Equity Funds: For stable growth.
• Mid-Cap Equity Funds: For higher growth potential.
• Small-Cap Equity Funds: For potentially high growth (while acknowledging higher risk).
• Index Funds/ETFs: For passive, low-cost exposure to the market.
• Debt Funds: For stability and income.

I understand that past performance is not indicative of future results, but I would still appreciate your insights on funds with a consistent track record and a strong fund management team. Direct plans with lower expense ratios are preferred. I am also interested in your perspective on whether I should continue to hold the Union Bank of India shares or consider diversifying those funds.

Thank you for your time and consideration. I look forward to hearing from you soon.

 

[Pissant]

Nippon India Small Cap Fund​

Parag Parikh Flexi Cap​

ICICI Prudential Equity & Debt Fund​

are the ones I would recommend and am personally invested in.

 

[drvenkat]

Nippon India Small Cap Fund​

Parag Parikh Flexi Cap​

ICICI Prudential Equity & Debt Fund​

are the ones I would recommend and am personally invested in.

what's the allocation?

 

[svijayan86]

You can read the articles in below website…has ton of articles and people experience on their investment journey….i would suggest you to have multiple company shares instead of single company shares if you like doing direct equity investment but if you don’t have time to keep track of market then suggest going with mutual funds…ideally you need to have equity and debt fund at 70% & 30% or 60% & 40 % and gradually reduce equity fund % to 0 before 2-3 years ahead of your goal…freefincal forum explains that concept beautifully

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[creditguru]

Hello Technofino members,

I am posting here today seeking your expert advice on developing a comprehensive investment strategy. I have been following your work for some time and greatly admire your insights on personal finance and investing.

I am 36 years old and have the following financial situation:

• Savings Account: ₹7 lakhs currently in my salary account.
• ELSS Mutual Funds: ₹3.2 lakhs invested in ELSS funds.
• Union Bank of India Shares: 1700 shares.
• Pending Dues: ₹4 lakhs owed to me by friends (I understand these are not liquid investments in the traditional sense but wanted to provide a complete picture).
• Monthly Expenses: Less than ₹10,000 for the next 8 months.
• Net Monthly Salary: ₹1,00,000.
• Investment Horizon: More than 20 years.
• Investment Plan: I intend to invest the remaining amount of my salary after expenses for the next 8 months. Following that, I plan to invest a minimum of ₹60,000 per month consistently.

I have a moderate risk tolerance and am looking to build a diversified portfolio for long-term financial growth, primarily focusing on retirement planning and other long-term goals. My primary goal is to maximize returns while managing risk effectively over my 20+ year horizon.

I would be grateful if you could provide me with a suggested asset allocation strategy, considering all my assets, including the ELSS funds and Union Bank shares, and allocating appropriately across different asset classes such as equity and debt. Furthermore, I would appreciate your recommendations on specific mutual funds within each asset class that you believe would be suitable for my profile, investment goals, and long-term horizon. I am particularly interested in your views on:

• Large-Cap Equity Funds: For stable growth.
• Mid-Cap Equity Funds: For higher growth potential.
• Small-Cap Equity Funds: For potentially high growth (while acknowledging higher risk).
• Index Funds/ETFs: For passive, low-cost exposure to the market.
• Debt Funds: For stability and income.

I understand that past performance is not indicative of future results, but I would still appreciate your insights on funds with a consistent track record and a strong fund management team. Direct plans with lower expense ratios are preferred. I am also interested in your perspective on whether I should continue to hold the Union Bank of India shares or consider diversifying those funds.

Thank you for your time and consideration. I look forward to hearing from you soon.

Disclaimer: I am presently not a registered investment advisor, so please do your own research also.

I can suggest you some funds for research which provides growth with diversification:

1. Parag Parikh Flexicap- gives exposure to large, mid and smallcap Indian and global
2. Nifty50 index- Go for any that has low expense ratio and low tracking errors- Navi is good or can go for any other AMC
3. For gold funds, SBI is good but buying gold ETF (Nippon/SBI etc) directly in your demat is much cheaper
4. For risky funds, go for 1 smallcap (Nippon Smallcap has been consistently good since the time it was Reliance Smallcap), 1 midcap (Motilal Oswal or any consistent fund), 1 value/contra (either SBI Contra/Kotak Contra/ICICI Value Discovery), 1 thematic (eg. infra & mfg/defence/pharma/whichever theme seems prevalent for the short to medium term)
5. Global index fund tracking S&P500