I am Sambit patra, age 31, unmarried, working for last 9.5 yrs in TCS as Software engineer. Current CTC 9lac per annum. It will change to 10 lac this year.
I have 28lacs in total savings so far ( 52% in Debt, 41% in Equity, 6% in Gold, and rest in crypto and other)
Regular investment:
I am investing yearly 1.5 lac in PPF, 50k in NPS, 1lac in MF SIP, and 50-60k in direct equity, 50k+ in other debt instruments like bonds and FD.
Onetime:
Invested 20k in crypto currency as experiment lastyear. Not planning to invest anymore
Invested 1.5lac in Gold in 6 SGB. Will invest more(5% of portfolio) if gold price decreases.
Other :
Termplan 80lac, premium 13k per annum
Health insurance: Company provided. Will change it when I switch company.
Goal : 12-14% yearly return from equity and 6-8% yearly return from Debt. Gold to provide stability.
Plan : Currently No plan. Only capital appreciation.
Future plan: I am uncertain about certain things in my future. Anticipated future change is Marriage and Children. My father have a home which I will receive. Don’t have a car yet. So probably get a car. Don’t see any other furure change that requires a high capital investment.
I guess my investment profile is conservative.
I am not going to change my PPF/NPS investment. This is for TAX saving purpose only. I have started investing in Equity in 2017-18 FY. I am planning to increase my Equity investment. And make my portfolio a 60%equity and 40% debt+other in next 5 years. I will share my MF and Equity portfolio in nextpost and Hope to get some insight from fellow members.
Hi Sambit Patra, your portfolio seems balanced and matured.
However, I advice you to do goal oriented investments rather than simple capital appreciation.
For example, you need a car, start investing into an MF via SIP, redeem the funds from this folio only when there is enough capital to purchase the car you want. Also invest into another fund for you retirement purpose and don’t touch it until retirement, this fund can be your capital appreciation fund too. If you don’t have different investments for different purposes/goals then you are forced to tap into your capital appreciation fund to meet the then needs and hamper its compounding effect.
Make sure your debt fund, which serves as an emergency fund, is large enough to meet your expenses for an year, or it is the size of your annual salary. Adjust the fund size accordingly as your salary increases. A little more than your annual salary wont hurt, but too much into debt funds might dent into your capital appreciation. Consider debt funds for stability and emergencies. That’s it.
Checkout these FDs by Tamilnadu State Power Finance Corporation, the interest rates were one of the best in India right now and they have both cumulative and non-cumulative options too: https://www.tnpowerfinance.com/tnpfc-web/products/cumulative
Excluding certain points, relevant to the time of the article, these may have changed now, but some other points I guess, are true irrespective of time.
Not invested in the above FDs, gave the link for some additional information.
Marriage & Children would increase your living expenses dramatically. Your spouse may or may not be working but still with time your expenses would increase much beyond inflation. This should be taken care by your increase in salary if not in same company then in subsequent.
Regarding home that you would inherit, is it in same city where you would work eventually? If not, then rent would gradually rise beyond inflation, will hurt you and you may decide to buy a house of your own.
So, expenses will take care of itself and ensure they increase at rates much beyond inflation and our investments
Regarding your portfolio mix, you seem to have scope to increase the equity percentage…but all would depend on the stocks you chose and why you chose them…
