I am 31 years old and have a goal for 10 -15 years. I invested in mutual funds through SIP at the age of 28, with Rs 10,000 per month through two SIPs (IDFC Sterling Value Fund and Nippon India Focused Equity Fund). I have stopped those SIPs.
Now, I am investing Rs 70,000 every month through SIP in different schemes (all are direct).
- Rs 10,000 per month in Franklin India US Feeder, Kotak Emerging Equity, Axis Focused 25, SBI Small Cap
- Rs 15,000 per month in Parag Parikh Flexi Cap Fund
- Rs 7,500 per month in ICICI Prudential Technology Fund
- Rs 5,000 per month in Canara Robeco Emerging Equities
- Rs 2,500 per month in Mirae Asset Emerging Bluechip Fund
I have invested a lumpsum amount during the Covid-19 downfall around March 2020 in L&T Mid Cap and HDFC Mid Cap Opportunities. That money has grown pretty well. Should I redeem the profits?
My investment is covering all possible categories in equities i.e large cap, mid cap, flexi cap and small cap.
My goal is to create Rs 8-10 crore at the age of 45 from my mutual funds’ investments. So, kindly advise me if I need to do any modifications to my present portfolio to achieve my goal?
-Jasvinder Singh Keer
Assuming an annual return of 12%, you would be able to build Rs 3.53 crore by investing Rs 70,000 every month for the next 15 years. If you increase your investments in line with your annual hikes, you will be able to make a sizeable corpus.
Your portfolio is all over the place. Investing in all possible equity categories is not the ideal way to diversify your portfolio. The idea behind diversifying your portfolio is to reduce the overall risk and maximise returns. You have to build a portfolio based on your risk profile. Do not invest in more than four schemes. It would be difficult to monitor your portfolio. Mindless diversification often results in duplication and over-diversification. It also reduces overall returns from your portfolio.
If you are not clear about the basics, seek the help of a reliable mutual fund advisor or financial planner.