{"id":200603,"date":"2025-12-25T02:08:20","date_gmt":"2025-12-25T02:08:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/200603\/"},"modified":"2025-12-25T02:08:20","modified_gmt":"2025-12-25T02:08:20","slug":"the-annual-review-of-my-goal-based-investments","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/200603\/","title":{"rendered":"The annual review of my goal-based investments"},"content":{"rendered":"

I evaluate the performance of my retirement portfolio and my son\u2019s future portfolio each year in a personal finance audit. This is the 13th edition. Published from 2013 onwards, these audits provide a sense of accountability and ensure I do not fall prey to fear of missing out, preventing bad investment decisions. They also point out the fruits of systematic goal-based investing<\/a>.<\/p>\n

I am proud and delighted that several readers have also published their audits at freefincal, inspiring the next generation of DIY investors. We now have close to 50 such articles from readers. See, for example, going from a net worth of Rs. 6000 to auto-pilot goal-based investing<\/a>. The full archive is here: reader story archives<\/a>. Some select articles are\u00a0available at the end of this audit.<\/p>\n

Archive:\u00a0 This is the archive of personal finance audits published before: 2013 audit<\/a>,\u00a0 2014 audit<\/a>, 2015 audit<\/a>,\u00a0 2016 audit<\/a>,\u00a0 2017 audit<\/a>, 2018 audit<\/a>, 2019 audit<\/a>, 2020 audit<\/a>, 2021 audit<\/a>, 2022 audit<\/a>, 2023 audit<\/a> and 2024 audit<\/a>.<\/p>\n

To perform a similar audit, refer to this guide: How to perform a portfolio audit?<\/a> \u2013 and use the freefincal robo advisor tool<\/a>. Then, you can review and track your goal-based investment portfolio with this auditing tool<\/a>.<\/p>\n

Disclaimer: This is a personalised financial audit. No part of this audit should be considered investment advice. My current portfolio is the residue of past mistakes, and my asset allocation reflects my changing goal-based risk appetite.<\/p>\n

Overview: 2025 (like 2023 and 2024) was a quiet year on the portfolio front. The focus has been on systematic investing and systematic increases in investments. See:\u00a0 Why increasing investments each year is crucial for financial freedom<\/a>.<\/p>\n

These yearly audits took quite a bit of time to publish, but since I shifted from Excel to the freefincal Google Sheets stock and mutual fund portfolio tracker<\/a>, the entire process has been automated. One can compare the portfolio at any time with identical investments in benchmark or passive funds (see the graphs below).<\/p>\n

Retirement<\/p>\n

Asset Allocation: Equity: 65.38%; Rest is in fixed income.<\/p>\n

Stocks: 5.59%\u00a0 XIRR 7.48% Analysis of the stock portfolio is available each month<\/a>.Equity MF 59.79%\u00a0 (86.24% of equity) XIRR 16.24%NPS 20.11% XIRR 8.92%PPF 3.78% (Wife + self) (this is approximate as I cannot track it online, and I don\u2019t want to visit banks unless I have to)Debt MF 9.54% XIRR 7.16%Cash 1.17%Details of the debt MF holdingsFund NameXIRRWeight (wrt to debt holdings)NPS8.92%58.11%PPFnot applicable10.93%ICICIGilt Rama6.89%14.09%Parag Parikh Conservative Hybrid Fund10.80%3.86%Parag Parikh Dynamic Asset Allocation Fund6.22%9.63%Cash (ICICI Arbitrage + Quantum Liquid)not considered3.38%Note: The NPS has 15% equity + long-term gilts (majority). I treat it as debt. The reader, particularly those with the default govt NPS allocation,\u00a0 is cautioned that long-term gilts are highly volatile. My NPS corpus returns dropped almost in half after the July 2013 bond crash. See 13 years of investing in the NPS<\/a>. This prompted the NPS regulator to allow staggered withdrawals and delayed annuities.<\/p>\n

Equity mutual funds<\/p>\n

Fund NameXIRRWeight (wrt to equity holdings)Parag Parikh FlexiCap19.66%59.78%HDFC Hybrid Balanced13.77%16.20%QLTE13.38%11.09%UTI Low Volatility13.24%12.92%<\/p>\n

This is the normalised evolution of my MF retirement portfolio since its inception (Jun 2008), along with an equivalent investment in Nifty 50 TRI. This was plotted with the freefincal portfolio tracker<\/a>.<\/p>\n

\"Growth<\/a>Growth of retirement portfolio compared with identical transactions in Nifty 50 TRI from June 2008 to Dec 2025<\/p>\n

Please do not read too much into the outperformance compared to the Nifty 50 TRI. Sometimes it has, and sometimes it has not. It depends on when you look. See: Why are you recommending index funds when your portfolio has beaten the market?<\/a><\/p>\n

Child\u2019s Education<\/p>\n

I have been investing to fund my son\u2019s future since December 2009 (a month before his birth). Then it was an 18-year-old goal, and now it\u2019s a 2-year-old goal.<\/p>\n

Asset allocation<\/p>\n

Equity:\u00a056.1%; the rest in fixed income. Overall portfolio return:\u00a0 16.10% as of 10th Dec 2025, (16.93% in Dec 2024; 16.46% in Dec 2023)FundXIRRWeightHDFCBalAdv17.33%25.31%ICICI Multi-asset17.88%57.69%Mirae Largecap14.59%16.53%HDFC Sensex*10.80%0.47%ICICI Arbitrage Pattu6.35%25.27%ICICI Gilt Pattu6.80%19.43%Parag Parikh CHF11.72%17.42%PPF37.88%<\/p>\n

I decided not to reduce the equity allocation because the fixed-income allocation is large enough to cover my son\u2019s college fees.<\/p>\n

This is the normalised portfolio evolution since its inception (Jan 2010), along with an equivalent investment in Nifty 50 TRI. This was plotted with the freefincal portfolio tracker<\/a>.<\/p>\n

\"Growth<\/a>Growth of my son\u2019s future portfolio vs. identical transactions in Nifty 50 TRI from Jan 2010 to Dec 2025<\/p>\n

Again, the outperformance should not be taken too seriously.\u00a0 \u201cChinchu\u201d is one of the many nicknames for our son, and the inspiration behind it is: Teach your kids financial decision-making with our book, Chinchu Gets a Superpower!\u201d<\/a><\/p>\n

Outlook & Summary<\/p>\n

The key advantages I have had are time (starting early) and starting on a clean slate. Time allows you the luxury of handling market downturns, and it also changes your risk outlook.<\/p>\n

Ten years ago, I would have said ~ 65% equity at age 48 is a bit much. However, I am comfortable with it today and wonder what I should do to leave it at 50-60% even after retirement. Remember, it is all about what the remaining 50-40% in fixed income is worth and building a diversified retirement portfolio. See: How to build the ideal retirement portfolio<\/a>. So, time changes the way we view market risk. Not starting early can be a severe handicap regarding how much risk we can take and how we handle it later.<\/p>\n

If there is one takeaway from my journey, it is to invest like a machine regularly as much as you can without worrying about market movements. If you have the time and mental strength to wait*\u00a0 for two bull runs, your life can change, provided you keep investing regularly as much as possible.\u00a0 * Wait here means wait =\u00a0stay invested with the right asset allocation and regular goal-based risk management<\/a>.<\/p>\n

The rate at which I have increased my investments was often higher than its XIRR. See: Why increasing investments each year is crucial for financial freedom<\/a> and Dec 20205 update:\u00a0How 14 years of tracking investments helped me build wealth<\/a> (the investing rate dropped below the XIRR due to too many unexpected expenses in 2025).<\/p>\n

A lavish lifestyle or servicing too much debt can hamper our ability to pay for future goals or maintain our lifestyle. Finding a balance is crucial. I am still trying to find mine.<\/p>\n

I urge readers to take advantage of the holiday season and any vacation (if applicable) to evaluate how much they need to invest toward their goals, tag their existing investments to their goals, and plan their 2025 investment schedule. The freefincal robo advisor tool<\/a> can help you create a full financial plan. Then, you can review and track your goal-based investment portfolio with this auditing tool<\/a>.<\/p>\n

Reader audits published<\/p>\n

This year, so many have become first-time crorepatis or well-established crorepatis and have come forward to share their journey on freefincal in the reader story section<\/a>. This is another such account.<\/p>\n

Also see:<\/p>\n

It is so wonderful to read these stories. All credit to their focus and discipline.<\/p>\n

Yes, the bull market played a part, but let us not take anything away from their determined effort to enhance and secure their financial lives. If you wish to share your story of disciplined investing, you can send it to\u00a0freefincal\u00a0AT\u00a0gmail\u00a0dot\u00a0com.\u00a0You don\u2019t need to be a crorepati or a lakhpati to send your journey. Process >>> Result.<\/p>\n

Do share this article with your friends using the buttons below.<\/p>\n

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About The Author \"Pattabiraman<\/a>Dr M. Pattabiraman<\/a> (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras<\/a>. He has over 13 years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X)<\/a>, LinkedIn<\/a>, or YouTube<\/a>. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing<\/a> (CNBC TV18) for DIY investors. (2) Gamechanger<\/a> for young earners. (3) Chinchu Gets a Superpower!<\/a> for kids. He has also written seven other free e-books<\/a> on various money management topics. He is a patron and co-founder of \u201cFee-only India<\/a>,\u201d an organisation promoting unbiased, commission-free, AUM-independent investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions!<\/a> \u21d0 More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition!! Watch the first lecture for free!\u00a0 One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Increase your income by getting people to pay for your skills!<\/a> \u21d0 More than 800 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you. (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!\u00a0 \u00a0 Our book for kids: \u201cChinchu Gets a Superpower!\u201d is now available!<\/a>\"Both<\/a>Both the boy and girl-version covers of “Chinchu Gets a superpower”. Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about?\u00a0As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. The narrative revolves around what he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management. What readers say!\"Feedback<\/a>Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child!<\/a> How to profit from content writing<\/a>: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only! Do you want to check if the market is overvalued or undervalued? Use our market valuation tool<\/a> (it will work with any index!), or get the Tactical Buy\/Sell timing tool<\/a>! We publish monthly mutual fund screeners <\/a>and momentum, low-volatility stock screeners<\/a>. About freefincal & its content policy. Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News<\/a>. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence\/data. Contact Information: To get in touch, please use our\u00a0contact form<\/a>. (Sponsored posts or paid collaborations will not be entertained.) Connect with us on social media Our publications<\/p>\n

You Can Be Rich Too with Goal-Based Investing<\/p>\n

\"You<\/a>Published by CNBC TV18, this book is designed to help you ask the right questions and find the correct answers. Additionally, it comes with nine online calculators, allowing you to create custom solutions tailored to your lifestyle. Get it now<\/a>. Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want \"Gamechanger:<\/a>This book is designed for young earners to get their basics right from the start! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner<\/a>.<\/p>\n

Your Ultimate Guide to Travel <\/p>\n

\"Travel-Training-Kit-Cover-new\"<\/a> This is an in-depth exploration of vacation planning, including finding affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)<\/a>