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Do I need to change my investment portfolio to meet all goals and save for retirement?


I am 32 years of age and get net salary of 99,000 per month. My monthly investments include 5,000 in NPS Tier-II, 10,000 in Aditya Birla SL Flexi Cap fund, 5,000 in Aditya Birla SL Banking & FS fund, 5,000 in Aditya Birla SL Small Cap fund , 10,000 in Aditya Birla Tax Saving 96 fund, 3,600 in employee provident fund (EPF), and 10,000 in FDR/Liquid fund. My annual investments comprise 2,000 in public provident fund, 50,000 in NPS Tier-I, and 50,000 in gold bonds. My household expenses come to 40,000 per month. I have a;sp taken a 3 lakh health policy and term insurance cover for 1 crore

As of today, my total investment includes 9 lakh in PPF, 2 lakh in NPS Tier-I, 1.5 lakh in NPS Tier-II, 2 lakh in EPF, 20 gm of gold bonds, valued at approximately 90,000, and mutual funds worth 6 lakh, gold ornaments worth 13 lakh and a small plot of land worth 4 lakh.

I have set the following goals: Buy a plot of land worth 15 lakh in the next two years, save 75 lakh for my son’s education over the next 14-17 years., save 70 lakh for his marriage in 23 years. I want to buy a house for 2 crore in the next 20 years, besides setting up a retirement fund of 2 crore in 28 years.

Is my current investment portfolio enough to meet my goals.

—Deepak Jain

It is ideal to diversify your mutual fund holdings across mutual fund houses. We would suggest that you shift from ABSL tax saving 96 fund to Mirae tax saver fund, shift your SIPs & investment amount from ABSL flexi cap to Parag Parikh flexi cap fund and also shift SIPs & investments from ABSL Banking & FS fund and invest in UTI nifty index fund as the ABSL fund is a thematic fund & dependent on banking/financial services sector performance only.

Assuming you have accounted for inflation in your goals and step-up your SIP every year by 6% and continue to contribute towards the PPF, NPS Tier 1 and tier 2 with a mix of Equity & corporate bond/government securities investments and the gold bond and liquid funds as planned, you should be in position to achieve your objectives.

We advise you to be a little flexible on your first goal though as market volatility may lead to some shortfall to achieve this first goal.

Assuming you have completed 6 years of investments in PPF and 9 years are remaining we advise you to extend your PPF account with contributions after the maturity period of 15 years. For your son’s education, the goal should be funded through a combination of PPF, gold and equity mutual funds. However, there will be still excess in your PPF, gold and equity mutual funds. The remaining excess PPF balance can be moved to equity mutual funds post extension completion.

For your house purchase, the goal will be funded through a mix of gold and equity MFs. However, both the assets could be having leftover balances even after this goal funding. For your son’s marriagem this goal could be funded through a mix of gold and equities mutual funds as well. In this goal you could end up completely utilizing your gold assets and the remaining could be funded through equity MFs. After this funding, you could have excess in your NPS tier 1 & II, Equities MF and land and liquid funds. Thus, for the retirement goal you could have sufficient assets to cover your retirement and this could be funded through a mix of equity, NPS, land plots and fixed deposits.

Vishal Dhawan is a certified financial planner and founder of Plan Ahead Wealth Advisors, a Sebi registered investment advisory firm.

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