Planning for retirement? A 10% increase in SIP can double your portfolio value in 20 years
Devadas Shenoy, a 32-year-old professional working in Abu Dhabi, is keen on building a substantial corpus for his retirement.
With a forward-thinking approach, Devadas seeks expert guidance on crafting a Systematic Investment Plan (SIP) that will secure his financial future. He invests close to Rs 12,000 every month and intends to increase the SIP by 10% every year.
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Understanding the intricacies of investment diversification, optimal SIP strategies, and fund selection, ET Mutual Funds spoke to Girirajan Murugan, CEO of FundsIndia for insights.
Background:
Occupation: Salaried employee in Abu Dhabi
Investment Objective: Solely for retirement at the age of 60
SIP Amount: ₹12,000 per month
Risk Profile: Moderately high to very high
Current SIP Allocations:
Parag Parikh Flexi Cap Fund: ₹1,500
Kotak Multicap Fund: ₹2,000
Mirae Asset Large and Mid-Cap Fund: ₹1,500
Quant Small Cap Fund: ₹2,500
ABSL PSU Fund: ₹1,500
Quant Absolute Fund: ₹1,500
HDFC Balanced Advantage Fund: ₹1,500
Devadas Shenoy: Diversification: Could you please evaluate the diversification of my current fund selections? Are these funds well-diversified across different market caps, sectors, and styles to mitigate risk and optimize returns over a 28-year period?
Girirajan Murugan: We prefer diversifying the portfolio based on investment styles mainly Quality, Value, Blend, Mid/Small Cap and Momentum.
Devadas Shenoy: Stepping Up SIP:
