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Your Financial Plan

Suresh Parthasarathy | Updated on January 15, 2018 Published on November 28, 2016


I am 28. I work in the IT sector in a Tier-II city. I plan to get married in summer, next year. Do I need to rejig my current portfolio? I have term insurance for ₹1 crore and group medical cover for ₹4 lakh.

Ranjan Sham

Your diversified investment portfolio is not aligned to your age. Your investments in tax saving instruments are more and a good part is going to PPF. You can plan a more aggressive portfolio.

Consider an asset allocation of 70:30 in equity and debt. PPF and NPS are long-term investments which will not help you meet the short-term goals. From next year, reduce exposure in PPF to ₹2,000.

Vacation: For domestic vacations, prefer ultra short-term mutual funds which offer better returns than recurring deposits. Invest ₹4,000 a month.

Invest in a mix of equity and debt in the proportion of 50:50 to achieve your international vacation goal. If the portfolio earns 11 per cent, you can meet the target. For equity portion invest in ICICI Pru Balanced advantage fund and DSPBR 25 fund. For debt portion invest in Kotak Low duration fund and DHFL low duration fund.

Property purchase: With your current earnings, buying property in six years will be difficult. Property worth ₹50 lakh currently will be ₹75 lakh, if inflated at 7 per cent. To fund 65 per cent you need a corpus of ₹50 lakh. To meet the target you need to invest ₹47,750 a month and it should earn 12 per cent return. Continue the existing SIP and after marriage, if your spouse works, increase the investments. Discontinue Franklin Indian Opportunities and start a fresh SIP in Franklin India prima plus fund.

The writer is a SEBI-registered investment advisor and founder, myassetsconsolidation.com

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