I want to create corpus of Rs 5 crores in next 15-20 years. I am currently 44 years old.

I have following MF investments (all lump sum):

• DSP equity & bond fund- Rs 80,000.00
• DSP Quant fund- Rs 20,000.00
• DSP tax saver fund- Rs 500.00
• Axis flexicap fund- Rs 25,000.00
• Axis nifty 100index fund- Rs 20,000.00
• Axis Floater fund- Rs 5,000.00
• HDFC Hybrid Debt fund- Rs 80,000.00
• ICICI divided yield fund- Rs 60,000.00
• L&T Large and mid cap fund- Rs 55,000.00
• Aditya Birla divided yield fund- Rs 5,000.00
• Tata divided yield fund- Rs 15,000.00
• Tata equity hybrid fund- Rs 18,000.00

I have SWP of total Rs 15,000 in few of the above funds.

Advise me what needs to be done?

Ans: It would be advisable to use SIP or STP methods to accumulate corpus and let the power of compounding work.

A monthly investment of Rs 40,000 would be required for a corpus of Rs 5 crores in 20 years.

The funds that may be considered are as under:

• HDFC Index Fund - Sensex Plan - Regular Plan - Growth 
• Samco Flexi Cap Fund - Regular Plan - Growth 
• UTI MNC Fund - Growth Plan
• Parag Parikh Flexi Cap Fund- Regular Plan Growth
  
  
  

Ans: It would be advisable to use SIP or STP methods to accumulate corpus and let the power of compounding work.

A monthly investment of Rs 40,000 would be required for a corpus of Rs 5 crores in 20 years.

The funds that may be considered are as under:

• HDFC Index Fund - Sensex Plan - Regular Plan - Growth 
• Samco Flexi Cap Fund - Regular Plan - Growth 
• UTI MNC Fund - Growth Plan
• Parag Parikh Flexi Cap Fund- Regular Plan Growth
  
  
  

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: It's commendable that you're focused on building a significant corpus in a relatively short period. However, aiming for a corpus of 5 crores in just 5 years is an ambitious goal and may require a carefully crafted strategy and potentially higher investments.

Here are some considerations:

Investment Amount: Given your current portfolio value of 50 lakhs and monthly SIP of 2.25 lakhs, you may need to increase your investment amount to achieve your target. Consider whether it's feasible to increase your SIP amount or allocate additional lump sum investments.
Risk and Return: With a relatively short investment horizon, it's crucial to strike a balance between risk and return. Evaluate the risk profile of your investments and ensure they align with your risk tolerance and goals.
Diversification: Review the diversification of your portfolio across different asset classes, sectors, and market capitalizations. Consider diversifying further if needed to reduce concentration risk.
Regular Review: Given the short time frame, regularly monitor the performance of your investments and adjust your strategy as needed. Be prepared to make tactical changes based on market conditions and evolving financial goals.
Professional Advice: Consider consulting with a certified financial planner or advisor who can provide personalized guidance based on your financial situation, goals, and risk profile.
Remember, achieving such a substantial corpus in a short period requires disciplined savings, prudent investing, and realistic expectations. While it's essential to aim high, it's also crucial to maintain a realistic perspective and adapt your strategy as needed along the way.