I am currently drawing a net monthly salary of ₹69,000. Out of this, I am paying an equated monthly instalment of ₹10,000 for a car loan. Besides, I am investing ₹8,000 in 4 Systematic Investment Plans (SIPs), with ₹2,000 each in Axis Bluechip, Parag Parikh Flexi Cap, ICICI Hybrid Fund, and Canara Robeco Emerging Equities. I am also allocating ₹4,000 for a gold scheme. I am now planning to add another ₹2,000 SIP in Mirae Asset Large Cap and want to invest an additional ₹2,000 in SIPs. Is this fine? Also, is the National Pension System (NPS) beneficial for me? —Kumaran R.
It is always better to invest based on your financial goals. You have total SIP investments, including future allocations, of ₹16,000. Of this, you have a 25%, or ₹4,000, allocation to gold.
Usually around 10% allocation is gold is good enough for long-term investing. Axis Bluechip Fund has underperformed for some time and you can reconsider investing that amount in another fund. Mirae Large Cap Fund has been a good fund for a long time though it has underperformed its peers in the recent past.
It continues to remain a good option in the large-cap Fund category. You can also opt to add SIPs in some of the following funds. SBI Large and Mid Cap Fund, ICICI Bluechip Fund, HDFC Flexicap Fund, 360 One Focussed Equity Fund and Kotak Emerging Equity Fund.
NPS is a decent investment avenue to build a corpus for retirement as it allows you to invest 75% in index funds, but the money gets locked up till the age of 60. Also, at retirement, you have to invest 40% of the accumulated amount in annuities. These factors impact liquidity and returns in the case of NPS.
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