I want corpus of Rs 1Cr in three yrs . I hv 1Rs 10000 /Month in ICICI Pru India opportunity fund 2.ICICI Pru innovation fund Rs 10000/month 3.SBI contra fund Rs 20000/month 4.Parag parikh lexical fund Rs 20000/month 5.HDFC balanced advantage fund Rs 20000/month. Pl advise are these funds OK?

Ans: These funds are fine; please continue

Ans: Hello Value Investors. Please quantify your investment constraints.

Ans: • To achieve a target corpus of Rs. 1 crore in three years, considering an expected return of 9% to 10% through hybrid funds, you would need to make a lump sum investment of approximately Rs. 75.13 lakhs. Alternatively, if you opt for a Systematic Investment Plan (SIP), the monthly contribution required would be around Rs. 2.37 lakhs.

• These calculations are based on the assumption that hybrid funds could generate returns within the specified range. However, it's essential to note that all investments carry inherent risks, and market conditions can vary.

• While these figures provide a general estimate, it is highly advisable to consult with a financial advisor. A financial advisor can analyze your risk tolerance, income, expenses, and overall financial situation to create a personalized investment plan aligned with your specific goals. Their expertise is invaluable in fund selection, portfolio management, and ensuring that your investment strategy is tailored to your unique circumstances.

For better financial assistance, seek financial counseling for personalized guidance based on your time frame, goals, and risk appetite.

Ans: To achieve a corpus of Rs 4 crore in 18 years, you'll need to assess whether your current SIPs and fund selection are adequate.

Current Investments:
Your total monthly SIP is Rs 68,000. Over 18 years, assuming an average return of 12 per cent per annum (which is reasonable for a well-diversified equity portfolio), here's a rough estimate:

Future Value of SIPs:

Using the SIP formula, the corpus generated by Rs 68,000 monthly SIPs over 18 years at a 12 per cent annual return would be approximately Rs 3.8 to 4 crore.

Analysis:

Fund Selection:

• Equity Funds: Most of your funds are equity-oriented, which is good for long-term growth.
• Sectoral Funds: You have multiple sectoral/thematic funds (like technology, energy, digital, etc.). These can be volatile, and while they offer higher growth potential, they also carry higher risk. It's essential to ensure you're comfortable with this level of risk.
• Debt Fund: HDFC Hybrid Debt Fund and Nifty G-Sec Index Fund add a bit of stability to your portfolio, but they're relatively conservative compared to pure equity funds.

Diversification:

Your portfolio is well-diversified across sectors and asset classes. However, it's important to periodically review and rebalance your portfolio to align with market conditions and your risk tolerance.

Additional Investments:

If you want to be more certain of achieving or even exceeding the Rs 4 crore target, you could consider increasing your SIPs gradually as your income increases.

Another approach is to invest any bonuses or lump sums you receive into these funds or consider adding new funds to further diversify.

Conclusion:

You're on track to achieve your target based on current contributions. However, it's always good to review your portfolio annually, consider increasing SIPs as your financial situation improves, and consult with a financial advisor to ensure your investments are aligned with your goals and risk tolerance.