In a special episode of Bano Apna Finance Minister, market expert Abhijit Chokshi shared practical insights on building a strong long-term investment plan, highlighting how disciplined investing and smart portfolio allocation can help investors create significant wealth over time.
Portfolio review: Reduce risk, simplify strategy
Responding to a query from Amit Agarwal, a 45-year-old teacher aiming to build a retirement corpus over 12 years, Chokshi noted that the investor’s current portfolio is heavily tilted towards high-risk funds.
He advised trimming exposure to certain schemes and simplifying the portfolio. According to him, investors should ideally consolidate their holdings into three to four funds, with a stronger focus on stability.
- Allocate around 40–45 per cent to large-cap funds
- Limit exposure to mid-cap and small-cap funds
- Avoid over-diversification across too many schemes
Chokshi also recommended increasing allocation in existing large-cap holdings to bring balance and reduce overall risk.
Rs 55–80 lakh corpus possible in 12 years
On expected returns, the expert said that continuing current SIP investments could help build a corpus of nearly Rs 55 lakh over 12 years.
However, with a disciplined approach such as increasing investments by 10% annually, the total corpus could rise significantly to between Rs 75 lakh and Rs 80 lakh.
Gold ETFs vs multi-asset funds: What should investors choose?
Addressing another query on diversification, Chokshi suggested that investors with already high equity exposure should consider adding commodities like gold.
Instead of opting for multi-asset funds, he recommended a more targeted approach:
- Allocate about 60 per cent of additional funds to Gold ETFs
- Invest the remaining 40 per cent in debt funds for stability
This strategy, he said, helps balance risk while ensuring exposure to non-equity assets.
Long-term wealth creation needs discipline
For investors with a 10-year horizon, Chokshi emphasised that a mix of gold and debt, along with existing equity investments, can create a relatively stable and rewarding portfolio.
He added that consistent investing and periodic portfolio review remain key to achieving financial goals, with potential to build a corpus of around Rs 50 lakh over a decade under a balanced strategy.
Bottom line: Simplifying portfolios, managing risk, and staying disciplined with SIPs can significantly improve long-term wealth creation outcomes.
