Kotak Infrastructure and Economic Reform Fund- (Direct, Dividend reinvest): Rs 2,000 (investing since 2016)
Kotak Infrastructure and Economic Reform Fund – (Direct, Growth): Rs 2,000 (since June, 2018)
Axis Long Term Equity Fund – (Direct, Growth): Rs 5,000 (since June, 2018)
Mirae Asset Emerging Bluechip Fund – (Direct, Growth): Rs 1,000 (recently invested)
HDFC Small Cap Fund – (Direct, Growth): Rs 1,000 (recently invested)
My goals :-
Child education : Rs 50 lakhs after 15 years
Child Marriage : Rs 1 crore after 25 years
Retirement : Rs 5 crore at the age of 60
I am investing Rs 50,000 annually in NPS as well. I can increase my SIP amount by 10 per cent annually. Please let me know about my fund selection or suggest me any new funds to achieve my goals.
Gaurav Monga, Director, PxG Consultancy, responds:
Out of the total monthly investment of Rs 11,000 you have allocated close to 40 per cent towards thematic (infrastructure) funds, which is a very high allocation. Generally, it is not advisable to add theme based funds in the portfolio until the portfolio has good allocation towards diversified equity funds. This is because thematic funds are cyclical in nature, entering at wrong time of the cycle will lead to underperformance for long periods. Therefore, it is advisable to reduce/stop investments towards infrastructure funds and add diversified funds. The following schemes can be added/increased exposure:
– Mirae Asset Emerging Bluechip increase to Rs 4,000
– Kotak Standard Multicap Fund- Rs 5,000
As far as goals are concerned, to give you an brief up:
Child education- You need to invest close to Rs 10,000 per month to be able to reach your goal in the next 15 yrs.
Child marriage- Monthly investment of Rs 5,300 is required to achieve this goal.
Retirement- To create a corpus of Rs 5 crore at the age of 60, monthly investment of close to Rs 14,000 is required.
Note- For the above goals, it is assumed that rate of return will be 12 per cent per year and investments are started with immediate effect.
To be able to get customized and detailed road map to achieve the goals, you should consult a financial planner.