-Name withheld on request
You must plan your investments by quantifying your financial goals and assessing the risk you can bear. Also, calculate the time you can remain invested. Keep inflation at the top while quantifying your financial goals. It will help you get the realistic lump sum corpus you may require to achieve your goals better and let you understand the required monthly investment amount.
Apart from the mutual fund & Sukanya Samridhi Yojana investment, you may also like to create a small emergency fund which will be 5-10% of your monthly income, which can be utilized in exigency.
Considering your long-term investment horizon and goals, we assume your risk profile will be aggressive. You can look at investing in equity-oriented mutual fund schemes through a systematic investment plan (SIPs) as equity has the potential to deliver superior returns in a longer time frame. Hence, you may divide your total monthly investable amount equally among funds like ICICI Pru Large & Mid Cap Fund, HDFC Large & Mid Cap Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, Canara Robeco Small Cap Fund & SBI Contra Fund. This way, your portfolio will be diversified across the category, geography, and AMCs. It is also advisable to review your portfolio at least once a year.
Query answered by Sanjiv Bajaj, joint chairman and MD, Bajaj Capital.
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