Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Nikunj

Nikunj Saraf  | Answer  |Ask -

Mutual Funds Expert - Answered on Nov 10, 2022

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more
Chandan Question by Chandan on Nov 10, 2022Hindi
Listen
Money

Hi sir, please give me your expert opinion to build corpus of 2-3 cr in next 15 year with 60K of monthly MF SIPs (or STPs) in all categories. Also lump sum of around 10Lakh, what are the options to invest in MF for long term up to 20 years to help my daughter for her education, marriage etc.

Ans: Hello Chandan. It looks like you're headed in the right direction with your 2CR corpus and SIP vision.

For your child's education and marriage, I recommend investing via STP rather than lump sum to take advantage of future market volatility. Consider flexi, mid, and small cap categories for STP/SIP.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Apr 05, 2022

Listen
Money
I hv just started my investment in MFs. I am 24yrs and want to make a corpus of Rs. 3 to 4 Cr by investing in MFs in 20 to 25 yrs. Pls guide me how can I achieve my target. DSP MID CAP Rs 5KCANARA ROBECO EMERGING (R) G Rs 5K AXIS MID CAP Rs 3K SBI FOCUSED EQUITY (R) G Rs 5K ICICI PRU FLEXICAP G Rs 5K AXIS ESG FUND Rs 10K I CAN ALSO INVEST IN LUMP SUM OF RS. 2.00LAC. Looking forward to your advice. Omkeshwar Singh Please continue and yes you may invest Rs. 2 lakh as lump sum proportionally in all the above funds. Abhsihek Sarin: This is in regards to your Ask MF Guru section on Rediff.com. Requesting your advice on and review of the following investments. I have recently started a mutual fund portfolio at age 25, with monthly SIPs totalling Rs 8500, and targeting a total monthly investment of Rs 10000. The mutual funds I have currently invested in are: Aditya Birla Sun Life Corporate Bond Fund Direct Growth - Rs 3000 monthly SIP Mirae Asset Tax Saver Fund Direct Growth - Rs 1500 monthly SIP Axis Small Cap Find Direct Growth - Rs 1500 monthly SIP ICICI Prudential Technology Direct Plan Growth - Rs 2500 monthly SIP Risk appetite is very high; annual step up is targeted at 15% and the aim is to achieve Rs 1cr corpus in 15 years from today i.e. age 40. Please review the above investments, and also suggest a moderate risk mutual fund to invest the remaining Rs 1500.
Ans: Portfolio is fine and it's good that you have started investing early. For moderate risk you may look at hybrid funds in balanced advantage category.

..Read more

Ramalingam

Ramalingam Kalirajan  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 03, 2024

Money
Hi, I am 47 years old and have been investing in MF’s since age of 29. My current valuation of MF’s is 1.6 Cr. Below are my SIP’s details – I do step up of around 5000-8000 every year. My goal is to have a corpus of Rs. 5 Cr at age of 60. Kindly suggest if with current investments I can achieve the goal and also suggest if I need to change any MF schemes. Fund SIP Canararob Small Cap 4000 Dsp Small Cap 5000 Edelweisis Flexi 6000 Franklin Focussed 2000 Hdfc Mid Cap 2000 Mirae Multicap 5000 Mirae Midcap 13000 Mirae Large and Midcap 9000 Nippon Multicap 17500 Franklin India Opportunities 4000 Bank of India Flexicap 4000 Total 66500 Regards, Nitin M
Ans: Nitin, you've done a commendable job investing in mutual funds from the age of 29. You have built a substantial corpus of Rs 1.6 crore. Investing Rs 66,500 monthly, along with regular step-ups, shows your commitment to long-term wealth building. Your goal of Rs 5 crore by the age of 60 is achievable, but it requires a careful analysis of your current portfolio and projections.

Let’s break down the strategy and see if adjustments are needed.

Current SIPs Overview
Here are your SIP details:

Canara Robeco Small Cap: Rs 4,000
DSP Small Cap: Rs 5,000
Edelweiss Flexicap: Rs 6,000
Franklin Focused: Rs 2,000
HDFC Midcap: Rs 2,000
Mirae Multicap: Rs 5,000
Mirae Midcap: Rs 13,000
Mirae Large and Midcap: Rs 9,000
Nippon Multicap: Rs 17,500
Franklin India Opportunities: Rs 4,000
Bank of India Flexicap: Rs 4,000
Total monthly investment: Rs 66,500.

Let's first check if your current portfolio aligns with your Rs 5 crore goal.

Goal Achievement: Will You Reach Rs 5 Crore by 60?
You have 13 years left to achieve your goal, from age 47 to 60. You’re currently investing Rs 66,500 per month, and you also increase your SIPs by Rs 5,000 to Rs 8,000 annually.

Considering an average return of 10-12% per year from your mutual funds, and taking into account your step-up plan, you should comfortably achieve your Rs 5 crore target by age 60. But to ensure consistent growth, your portfolio should be well-diversified and structured.

Projections:

Your current SIPs, along with annual step-ups, should grow your corpus significantly over the next 13 years.
You’re likely on track for your Rs 5 crore goal, assuming stable market conditions and continued step-up.
Assessing Portfolio Diversification
1. Overlap in Funds

You hold several mid-cap and multicap funds, which could lead to overlap. For example, your Mirae Midcap and HDFC Midcap funds might hold similar stocks. It’s important to avoid too many funds in the same category to prevent redundancy and excessive risk exposure.

Suggested Action: Trim the number of overlapping funds. Keep one or two solid midcap funds instead of multiple, and the same for flexicap/multicap funds.

2. Excessive Exposure to Small Caps?

You have Rs 9,000 in small-cap funds (Canara Robeco Small Cap and DSP Small Cap). Small caps are more volatile and can swing widely based on market conditions. While small-cap funds have high growth potential, they also carry higher risk.

Suggested Action: Keep a balance between small, mid, and large caps. Limit small-cap exposure to no more than 10-15% of your total portfolio to reduce volatility risk.

Step-Up Strategy: Continue or Adjust?
Your current step-up of Rs 5,000 to Rs 8,000 per year is an excellent strategy. It ensures that your investments grow in line with your income and inflation. I suggest continuing this step-up approach as it will help you reach your Rs 5 crore goal faster.

Portfolio Simplification and Trim
With 11 funds in your portfolio, there is room to streamline for better management and performance tracking.

Suggested Action: Reduce your portfolio to around 6-8 funds. You don’t need to hold too many funds. Focus on the best performers across categories like large-cap, mid-cap, and flexi-cap.

Tax Efficiency and Fund Management
When selling mutual funds in the future, keep the tax implications in mind:

Long-Term Capital Gains (LTCG): Above Rs 1.25 lakh is taxed at 12.5% for equity mutual funds.
Short-Term Capital Gains (STCG): Are taxed at 20%.
Given your long-term horizon, focus on funds that offer strong long-term growth potential and avoid frequent churn to minimize tax impact.

Active Management vs Passive Funds
Since you haven’t mentioned index or direct funds, let me briefly explain why actively managed funds are preferable in your case.

Active Funds: Offer potential for better returns as fund managers actively pick stocks.
Passive Funds: Like index funds, simply track the index and may underperform during market downturns.
Stick with actively managed funds, especially those overseen by experienced fund managers, to give your portfolio a better chance of outperforming the market.

Term Insurance and Other Investments
While it wasn’t mentioned, if you don’t have a term insurance plan, consider getting one. Term insurance provides financial protection for your family in case of any unfortunate event and is cost-effective.

Suggested Action: Secure a term insurance plan if you don’t already have one. Avoid mixing insurance with investments like ULIPs, as they don’t offer optimal returns.

Additional Recommendations
Diversify Across Asset Classes: Consider adding some debt or hybrid mutual funds to your portfolio. These will act as a cushion during market downturns and provide stability.

Emergency Fund: Keep at least 6-12 months of living expenses in a liquid or short-term debt fund as an emergency fund. This ensures you won’t need to redeem your equity investments during market corrections.

Final Insights
Your current portfolio is on the right track to achieve the Rs 5 crore target by age 60. However, simplifying the number of funds, balancing risk with diversification, and continuing your step-up strategy will help you stay on track. Focus on strong-performing funds, limit small-cap exposure, and ensure you have a balanced mix of large, mid, and multi-cap funds.

Lastly, keep an eye on market performance and review your portfolio annually to make adjustments if needed.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Dr Nagarajan J S K

Dr Nagarajan J S K   |1876 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jul 18, 2025

Sunil

Sunil Lala  |218 Answers  |Ask -

Financial Planner - Answered on Jul 18, 2025

Money
Dear Sir, I am 40 year old, my take home is 1.41 lacs per month. I have 11 year old daughter and 3.5 year old son. I am investing 12.5k per month in SSY (27 lacs in total) and 12.5k per month in PPF (6 lacs in total). Investing around 4k in SIP in index fund (1.2 lacs) and I have around 30 lacs in FD. I have taken 1cr term insurance and have 10lakhs health insurance for family. FD is not giving me satisfactory returns and not beating the inflation. I am planning to invest 25 lacs in buying a site. I don't have any loans and don't have major commitment other than children education. I request you to guide me on future investments, I would like to get a constant income of 1-1.5 lacs PM after 5-6 years.
Ans: Hi Ajay, understand the SSY and PPF are also not givin you enough returns, your SIP in index funds and FD all are ineffecient return making assets. Buying a site will not ensure liquidity when you will need it the most, and 10L health insurance for a family of 4 is low as well.
Having a constant income of 1-1.5L p.m. means annually 12-18L of income, and to have a passive income like that, your corpus should be 15-16x of the annual income --> which means we are looking at 1.8Cr to 2.7Cr of corpus in the next 5-6 years.
There are a lot of flaws in your investment strategies because at one place you are wanting to lock in money at a site, in SSY and PPF and on the other you are looking to earn 1-1.5L p.m. which is possible through liquid investments.
I would love to help you out, but to me it feels like there is a gap in the knowledge about investments and personal finance. If you are wanting to have a detailed conversation about your investments and where you can park your money to grow it to have the monthly income you want after a certain number of years, visit my website www.slwealthsolutions.com

...Read more

Sunil

Sunil Lala  |218 Answers  |Ask -

Financial Planner - Answered on Jul 18, 2025

Money
I m a 44 yrs old . My salary 85k net per month. Rent income 1.20 lakh per month. Fixed deposit 46 lakh PPF 21.35 lakh Lap loan 46.50 lakh OD loan 6.50 lakh. Mutual funds 2.75 lakhs Shares 3.25 laks Property in Noida, jewar, dwarka , Rohini and faridbad. My wife is earning 50k per month but not contributing in assests we spend his salary on vacations and foods and cloths as she don't want to save. According to her it is my responsibility to provide foods and investment. At this age I m going to lose my jobs. I can manage all things with rental but how can I build up financial assets from here on and my triple source like salary, rental and interest helps me a lot in past. I m simple man with basic needs no extra expenses on me. But kids are in college in class 9 how can I build assests and ensure their good education
Ans: Hello Sanjiv, you have a lot of money parked in debt instruments like FD, PPF and not-liquid assets like properties as well. I would advise you to calculate your income from each asset on a yearly basis in % terms. I think that will give you a true picture of what you are earning as of now vs what you can earn in equity mutual funds which are managed by professionals.
We can have a detailed conversation around your situation and I can help you understand what re-shuffling can be done in your asset portfolio (with continuing rental+interest income) with greater capital appreciation, visit my website www.slwealthsolutions.com if you are interested

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x