iStockI am 44 years old. My goal is to create Rs 2 crore for my retirement at 60. My investment horizon is 16 years. My risk profile is moderate. I have been investing Rs 5,000 per month for the past five months via SIPs in the following schemes. All investments are in direct and growth plans.
Franklin Templeton Focused Equity Fund
ABSL MNC Fund
ABSL Equity Fund
HDFC Small Cap Fund
IDFC Dynamic Bond Fund
Mirae Asset Emerging Bluechip Fund
Mirae Asset Healthcare Fund
Franklin India Feeder US Opportunity Fund
Motilal Oswal Nasdaq 100 Fund
Should I change my portfolio to create a corpus of Rs 2 crore?
-Raja Sekhar
We always ask investors to choose mutual funds based on their goals, horizon, and risk profile. Since you have a moderate risk profile, ideally you should invest most of your corpus in multi cap mutual funds. If you want to reduce risk, you may also diversify and take a small exposure to large cap mutual funds.
Your current portfolio lacks focus. You are currently investing in a focused multi cap scheme, MNC scheme, diversified multi cap scheme, small cap scheme, dynamic bond fund, large & mid cap scheme, pharma scheme, two international schemes. It is not clear why you have a debt scheme in your portfolio. Similarly, small cap and large & mid cap schemes are not in line with your risk profile. Thematic schemes should be added only if you have sound knowledge about the sector and can time your entry and exit in them.
You should reassess your risk profile and make sure to build a focused portfolio to maximise returns. If you are not sure about how to do it, you should seek the help of a mutual fund advisor.
Assuming an annual return of 12% on your investments, you may be able to build a corpus of Rs 2 crore by investing around Rs 39,637 every month for the next 15 years. However, a word of caution. It is always work with real numbers when it comes to calculate a target corpus for your retirement. Find out your current annual living expense, use annual inflation of 6-8% to find out how much it will be after 15 years. Once you know the annual living expense, you can multiply it by the number of years you are likely to live to find out your target corpus. Note, this is a rough calculation. You can finetune it further by adding how much you expect to earn every year after retirement and the annual inflation rate.
Franklin Templeton Focused Equity Fund
ABSL MNC Fund
ABSL Equity Fund
HDFC Small Cap Fund
IDFC Dynamic Bond Fund
Mirae Asset Emerging Bluechip Fund
Mirae Asset Healthcare Fund
Franklin India Feeder US Opportunity Fund
Motilal Oswal Nasdaq 100 Fund
Should I change my portfolio to create a corpus of Rs 2 crore?
-Raja Sekhar
We always ask investors to choose mutual funds based on their goals, horizon, and risk profile. Since you have a moderate risk profile, ideally you should invest most of your corpus in multi cap mutual funds. If you want to reduce risk, you may also diversify and take a small exposure to large cap mutual funds.
Your current portfolio lacks focus. You are currently investing in a focused multi cap scheme, MNC scheme, diversified multi cap scheme, small cap scheme, dynamic bond fund, large & mid cap scheme, pharma scheme, two international schemes. It is not clear why you have a debt scheme in your portfolio. Similarly, small cap and large & mid cap schemes are not in line with your risk profile. Thematic schemes should be added only if you have sound knowledge about the sector and can time your entry and exit in them.
You should reassess your risk profile and make sure to build a focused portfolio to maximise returns. If you are not sure about how to do it, you should seek the help of a mutual fund advisor.
Assuming an annual return of 12% on your investments, you may be able to build a corpus of Rs 2 crore by investing around Rs 39,637 every month for the next 15 years. However, a word of caution. It is always work with real numbers when it comes to calculate a target corpus for your retirement. Find out your current annual living expense, use annual inflation of 6-8% to find out how much it will be after 15 years. Once you know the annual living expense, you can multiply it by the number of years you are likely to live to find out your target corpus. Note, this is a rough calculation. You can finetune it further by adding how much you expect to earn every year after retirement and the annual inflation rate.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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