Year End: Portfolio Makeover

Continuing with my audit, I would like to present how I have reworked on my portfolio over a period of time. To provide a better perspective, I would start from 2014 upto present. The readers may be interested to know that I had a personal goal to ensure that I was loan free by December 31, 2013, which we achieved by tightening some strings. This also meant that I removed most of my equity investments to fund this objective and hence, it would be prudent and accurate to say that I restarted / rebooted my investment journey from January 1, 2014.

Portfolio – December 31, 2014

p2014

This is more of a real-estate/immovable property centric portfolio. However, the work had begun to re-balance it over a period of time and results are apparent in the subsequent sections.

Portfolio – December 31, 2015

p2015

Equity investments improved, but still Immovable property and Debt instruments took a large portion of the same. This made my resolve much more stronger to re-balance strongly in the coming year.

Portfolio – December 25, 2016

p2016

After some strong re-balancing, I have got equities to joint no. 2 with provident fund. In the coming years, equities will surpass the debt instruments and hopefully  will become my no. 1 asset class.

Some points to note:

  • The total AUM i.e. assets kept growing every year as fresh investments continued. This meant that the amount required to change the percentage is much much higher.
  • The immovable assets category DO NOT include the house I reside in.

Comments/Thoughts/Feedback/Suggestions are most welcome.

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Year End: Goals Review

Yayyy !!! X’mas is here and the new year is just around the corner. This is the time of the year when I audit and review my goals. I had described about how I go about planning for my goals in an earlier post. For the first time, I am sharing how I am faring about with my goals. First, the chart..

goals2016

For all these goals, there are 2 buckets:

  1. Primary (Main): This is a combination of Mutual Funds in which we invest regularly.
  2. Secondary (Backup): This is mainly Insurance Policies (yes, I continue to hold them) & Debt instruments (also used as emergency funds).

Some points to note:

  • The retirement corpus mainly comprises of EPF and PPF. Only in the past year, we have a couple of MF running as a replacement for VPF.
  • Our stock portfolio is the secondary / backup for our Retirement Corpus only.
  • The percentage figures are w.r.t. target numbers i.e. inflation corrected numbers as per the expected target year.
  • Gold and Silver for children’s marriage are planned separately and aren’t included in these numbers.

My expectation is to become financially independent ASAP. We don’t plan to take any new loans in the foreseeable future and hope to remain in the bliss of being in loan-free state.

Comments/Feedback/Thoughts/Suggestions are most welcome.