Pankaj Mathpal, managing director, Optima Money Managers in an interview to CNBC-TV18 shared investment strategies to achieve specific financial goals in a particular time frame. He also answered investor queries.

Below is the edited transcript of Mathpal’s interview with CNBC-TV18. Also watch the accompanying video.

Q: Investor wants to invest Rs 20,000 per month. He is looking for a goal of about Rs 40 lakh in 5 years. He has got a term plan where his sum assured is about Rs 25 lakh and he has also got some investments. It is divided in HDFC Top 200, HDFC Equity, IDFC Premier Equity and Reliance Gold Saving as well. How should he allocate the money?

A: If he wants to invest Rs 20,000 per month and we expect around 12% annual return from his portfolio, so he can accumulate around Rs 16 lakh in five years. But his target is Rs 40 lakh and to achieve that he should invest a fixed amount of Rs 48,000 every month.

So, starting with Rs 20,000 every month now and if he wants to accumulate Rs 40 lakh, he should increase his investment amount on YoY basis. All the funds in the portfolio are good and the investor should continue with those funds as well as the insurance scheme.

As far as allocating Rs 20,000 is concerned, he should add Reliance Gold Saving Fund to his portfolio. He can invest Rs 4,000 in gold saving fund, Rs 8,000 in HDFC Top 200 Fund, Rs 3,000 can be invested in HDFC Equity Fund and Rs 5,000 in a midcap fund like IDFC Premier Equity Fund. So this way he can allocate his Rs 20,000.