Hello Basu, I hope you are doing fine.Thanks for your informative blog.Keep it up. I have some query.Could you please suggest something. I am 38 yrs. old self employed professional.I want to start SIP at ₹ 15 k for next 12 yrs..Goal is to gain maximum return(minimum 12 %) with moderate risk so that I can think about part time retirement like sat.- Sunday holiday , flexibility in working hours.Other goal is child\’s education.So that money can help me in it.I have 4 yrs. old male child.I have no other big responsibilities. My query is, 1)Asset allocation would be equity: debt is 60:40 as you say. In equity if I go for 2 ELSS funds at ₹ 4500 each, total would be ₹ 9 k. Is ELSS fund good option for 12 yrs. horizon for both, tax saving & good return purpose ? What should we prefer, tax saving or good return; or both are possible in ELSS funds ? Which is better in terms of return for 12 yrs horizon,ELSS fund, or non tax saving equity funds ? Is it always advisable to have 1 ELSS fund only for 12 yrs horizon, or 2 ELSS funds are ok in terms of return ? 2) Proportions of large,mid, and small are fixed in ELSS , or depends on fund ? Majority of ELSS funds invest in which cap;large,mid, or small ? 3)When we talk about multi cap;are proportions of large,mid and smaIl are fixed, or depends on fund ? When investment horizon is 12 yrs; which is better, multi cap only, or separate large,mid and small caps? 4) What would you prefer proportions of large,mid, and small caps in equity if time horizon is 12 yrs ? 5) In debt fund, what would you prefer for 12 yrs horizon, ultra short term, short term, medium term, or long term debt fund ? Many times you prefer short term debt fund over others ,is there any specific reason? What would it be for 12 yrs. horizon ? 6) Could you please suggest asset allocation and portfolio for me for 12 yrsyrs horizon? Thanks. I
- If along with your reaching financial goal, you also need tax saving option, then there is no harm in choosing ELSS than regular funds.
- It depends on funds to funds. Hence, you have to check the mandate and underlying investment style of the fund.
- It depends on the fund manager views. Hence, it is not fixed.
- 50:30:20 in Large, Mid and Small.
- Ultra Short Term Debt Funds or Short Term Gilt Funds. Yes, I prefer these category funds. Because we look for debt category to compensate the volatility of equity. If we also have higher volatility in debt, then what is the purpose of diversification?
- Around 30:70 between debt and equity.
Thanks for reply.