Good afternoon. I want to create of corpus of 2 crores in 10 years. Presently I have a corpus of 5 lakhs in these mutual funds where I invest monthly 12000/- as follows: Franklin India Smaller Companies Fund - 2000/- HDFC Mid-Cap Opportunities Fund - Regular Plan - 2000/- HDFC Small Cap Fund - Direct Growth Plan -2000/- Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth -2000/- SBI Blue Chip Fund - Regular Plan Growth -4000/- Please suggest the changes to be made to reach my target. Thank you.

Ans: No changes are required.

Ans: Hello Girish. Your portfolio report is in good shape. From your current 12k sips per month, I would suggest increasing it to 60-70k sips per month to achieve the corpus of 2 Cr in 10 years. A better peer group scheme should be considered instead of the Small cap category schemes i.e. Franklin and HDFC. For your future investment, you may include Multicap category in your portfolio.

Ans: Your goal of accumulating a 5 crore corpus in 10 years is ambitious yet achievable with a strategic investment approach. Let's devise a tailored plan considering your current investments, income, and financial commitments.

Assessing Your Current Portfolio
Your existing mutual fund portfolio comprises various funds, including index funds, mid-cap funds, sectoral funds, and small-cap funds. While diversified, it's essential to ensure alignment with your long-term goals and risk tolerance.

Designing Your Investment Strategy
Optimize Mutual Fund Portfolio:

Review your mutual fund holdings to ensure alignment with your financial objectives. Consider consolidating or realigning your portfolio to focus on funds with strong growth potential and consistent performance.
While index funds offer cost-effective exposure to market indices, actively managed funds may provide higher potential returns, especially in volatile market conditions. Consider maintaining a balanced mix of both.
Systematic Investment Planning (SIP):

Continue your SIPs in mutual funds, adjusting allocations based on your risk appetite and return expectations. Focus on funds with a proven track record of outperformance and robust fundamentals.
Increase your SIP contributions gradually over time, leveraging the power of compounding to accelerate wealth accumulation.
Opt for Equity-Linked Savings Scheme (ELSS):

ELSS funds offer dual benefits of tax savings under Section 80C and potential for wealth creation. Consider allocating a portion of your SIP investments to ELSS funds to optimize tax efficiency.
Supplement with Traditional Investments:

Your existing investments in LIC, PPF, and NPS provide a foundation of stability and tax benefits. Continue to maximize contributions to these instruments to diversify your portfolio and mitigate risk.
Regular Review and Rebalancing:

Periodically review your investment portfolio to ensure alignment with your financial goals, risk tolerance, and market dynamics. Rebalance your portfolio as needed to capitalize on emerging opportunities and mitigate risks.
Conclusion
By adopting a holistic approach to investing and optimizing your portfolio across various asset classes, you can achieve your goal of building a 5 crore corpus in 10 years. Stay disciplined, stay diversified, and stay focused on your long-term objectives to realize financial success.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello;

25 L corpus invested in mutual funds, since last 7 years(present value not provided), may grow into a sum of 2 Cr, 10 years from now.

If you transfer FDs(27 L) into mutual fund investments then this may yield you a sum of 91.65 L, 10 year hence.

2 Cr + 0.9165 Cr= 2.9165 Cr
10-2.9165=7.0835 Cr

So our aim should be to generate corpus in excess of 7.0835 Cr over 10 years through SIP.

An sip of 2.9 L per month may yield us a sum of 7.15 Cr after 10 years.

If you feel this is a tough challenge then you may increase time to retirement as 15 years.

In this the MF & FD converted to MF corpus over 22 and 15 years may grow into sums of 3.68 & 1.69 Cr.

So 10-(3.68+1.69)=4.63 Cr

To achieve balance corpus of 4.63 Cr you may do a minimum monthly sip of 80 K for 15 years. A modest return of 13% is assumed from pure equity mutual fund schemes.

No EPF or NPS is considered since information not available.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.