How To Build Your Portfolio For Retirement—The Mutual Fund Show
Expert advice on how investors can go about allocating for various schemes in their portfolio.
Investing 20% of your monthly income into a systematic investment plan for 20 years can significantly secure your retirement, said investment expert Vijai Mantri.
Investors should "begin with at least 20%, and gradually increase it to 50%" of their gross income to ensure a robust financial foundation, according to him. Maintaining discipline is crucial for successful investing and utilising four flexi-cap funds can indeed be a simplified and effective approach, Mantri of JRL Money said.
Among the various fund categories, flexi-cap offers the advantage of flexibility by investing across market capitalisations and sectors, thereby capturing the entire market spectrum, Mantri said.
The multi-asset fund is another great idea, as it is efficient and tax-efficient as well, according to Mantri. "The fund manager takes a call on whether to go into silver, gold, or debt. The clients don't have the sense of ownership in a multi-asset fund," he said.
Mantri chooses banking and financial services, healthcare, manufacturing, and FMCG as the themes to invest in right now.
Query 1: I have portfolio exposure in PPFAS and rest in direct large-cap. I would like to add one or two more mutual funds. But even having three mutual funds makes me feel that it would be over-diversification. What should be my approach as a long-term investor?
Current investments:
Parag Parikh Flexi Cap Fund: Rs 23.72 lakh.
Parag Parikh Tax Saver Fund: Rs 5 lakh.
Name: Ram | Age: 33 years
Vijai Mantri: I will never ask my investors to put more than 20% in a single scheme. In my opinion, having one or two funds is not enough.
You should add couple of other flexi-cap funds—HDFC Flexi Cap and ICICI Value Discovery, Bajaj Flexi cap, and Helius Flexi Cap. But make sure to include a minimum of five funds in your portfolio.
