Wedding Finance

Investors may consider an IPO provided they do their due diligence

I am a 25 year old single person working in the IT industry. i am ready to invest ₹10,000 to 15,000 per month, which is about 22 to 33% of my net income.

My goal is to build a good body of work so that I can retire earlier and start my own business.

Currently I have the following investments: Gold value ₹70,000; ₹1,000 SIPs in Axis Bluechip Fund – Growth; ₹2,000 SIPs in the Axis Long Term Equity Fund – Growth; ₹2,000 SIPs in the Axis Midcap – Croissance fund; ₹2,500 SIPs in Mirae Asset Emerging Bluechip – Growth; ₹2,500 SIPs in Mirae Asset Tax Saver Fund – Growth; and ₹1 lakh in a fixed deposit.

My future commitments are my marriage in a year or two, my car in a year or two, and my apartment rent in about six months.

I need your suggestions to restructure / plan my investments in order to be able to constitute a good corpus.

I have some knowledge of IPOs and NFOs, but as they say, a little knowledge is a dangerous thing. Suddenly, I hesitate to invest myself in it. I also need your suggestions on them.

—Gopal Mishra

You have good savings potential. Currently you are saving 22-33% and you can aim to save even more at least until the work-from-home option becomes applicable. This will increase your savings rate, which will help you in the long run.

Investments are currently spread across large cap, large and mid cap, mid cap and tax saving funds. Asset allocation is essential, as are the patterns. You may want to consider adding more money to existing plans.

At the same time, you need to make sure you keep enough cash for your immediate expenses. While you have invested in a fixed deposit, you need to ensure that liquidity is maintained either by starting a SIP in debt mutual funds or even a recurring bank deposit for expenses like your wedding, which will require more cash flow. cash. And the rent, whenever it starts, can be covered by your increase in income.

It is prudent to stay away from an NFO unless the strategy offers something unique in nature or there are no such established structures in the market. An IPO may be considered, as long as due diligence is done and you can track the stock regularly. Unlike mutual funds, where the fund manager changes the allocation of the portfolio, in an IPO you are the fund manager and need to take a call as to whether you want to hold or sell the stock.

Surya Bhatia is Managing Partner of Asset Managers.

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