First of all thank you for approved my account and allowing me to ask any doubts in your Forum.
I am Pune based Software Developer, age 32, my wife is also Software Developer and her age is 29, and we have 2.5 years old daughter. We have car, bike and also living in our owned home. Currently I won’t have any single loan. I have savings only in PPF and Bank FD’s.
Three weeks ago, we were reached to Pune based “Personal Financial Planner” and after paid his consulting fees we went through 3 sessions like Cash Flow Analysis (Family Budget), 360 degree analysis, Planning for Financial Goals such as House Purchase, Child Education, Child Marriage, Vacation, Retirement etc. and he suggested me the following Asset Allocation for my Financial Goals.
Before implementation, I want your opinion; Is all suggestions are on right track or any one suggestion on wrong track or any one might have another good alternative ?
1. Goal: Daughter Higher Education (Term: 14 years, ROI: 15, Wealth Created: 3867801,SIP Required: 6848)
Product: Reliance Equity Opportunities Fund (Growth) SIP: 6000 Tenure: 14
2. Goal: Daughter Marriage (Term: 24 years, ROI: 15, Wealth Created: 5072367,SIP Required: 1822)
Product: Reliance Small Cap (small) (Growth) SIP: 2000 Tenure: 24
3. Goal: Retirement (Term: 22 years, ROI: 15, Wealth Created: 24279597,SIP Required: 11872)
Product_1: L&T India Value (Value Style) (Growth) SIP: 4000 Tenure: 22
Product_2: Birla Pure Value (Value Style) (Growth) SIP: 4000 Tenure: 22
Product_3: UTI Opportunities Fund (Growth) SIP: 4000 Tenure: 22
4. Goal: Wealth Creation (Term: 20 years, ROI: 15, Wealth Created: 38696845,SIP Required: 25845)
Product_1: HDFC Balance Fund (Balance) (Growth) SIP: 6000 Tenure: 20
Product_2: Reliance Pharma Fund (Pharma) (Growth) SIP: 6000 Tenure: 20
Product_3: ICICI Pru Value Discovery Fund (Value) (Growth) SIP: 6000 Tenure: 20
Product_4: UIT Mid Cap (Mid) (Growth) SIP: 7000 Tenure: 20
5. Goal: Car Purchase (Term: 7 years, ROI: 12, Wealth Created: 2408672,SIP Required: 18433)
Product_1: Birla MNC Fund (MNC) (Growth) SIP: 6000 Tenure: 7
Product_2: ICICI Pru Focused Blue chip (Large) (Growth) SIP: 6000 Tenure: 7
Product_3: Reliance Balanced Fund (Balance) (Growth) SIP: 6000 Tenure: 7
Please give us your insight.
If you have debt portfolio separately, then for intermediate goals (car purchase) maintain around 50:50 in equity and debt. For rest long term goals, you can maintain at 25:75. Regarding funds, my choice is simple.
- Large Cap
- Large and Mid Cap or Multi Cap.
- Small and Mid Cap.
Dump all the rest of funds.