Should I change my retirement portfolio?

I am new to mutual funds. I have been learning about it since last month and I have created a portfolio. I am 28 years and I would like to invest in mutual fund for 30 years to generate Rs 1.5 crore for my retired life. My portfolio:

Axis Blue Chip Fund: Rs 3,000
HDFC Small Cap Fund: Rs 4,000
Reliance Income Fund: Rs 1,500
BNP Paribas Conservative Hybrid Fund: Rs 1,500

Please let me know shall I start investing in these funds or need some changes in my portfolio?
–Avik Saha

You have not shared the parameters you have considered while constructing your mutual fund portfolio. We believe that investors should choose their mutual fund schemes based on their financial goals, investment horizon, and risk profile. Since we only know your goal and horizon, but not your risk profile, it would not be possible comment about the suitability of your portfolio.

You have chosen a largecap scheme, smallcap scheme, long-term debt scheme, and conservative hybrid scheme. Since you are investing for your retirement scheme, you should be investing mostly in equity mutual fund schemes. (if you have an asset allocation plan, you may invest in debt schemes, too.)

Your choice of equity schemes is a bit puzzling: largecap schemes are meant for conservative investors, while smallcap schemes are recommended to aggressive investors.

Debt schemes and conservative hybrid schemes are meant for conservative investors who want to avoid preserve their capital and earn modest returns. They are not suited for very long-term financial goals.

Assuming an annual return of 12 per cent, you can create around Rs 3.53 core by investing Rs 10,000 every month for the next 30 years.

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