Hi, I am investing in mutual funds since last 14 years. My age is 45 years. I have invested around 32 Lakhs and the current value stands at 59 Lakhs. Returns are around 17 percent. Current investment via SIP is as follows - Canara Robecco Small Cap - 4000 DSP Small Cap - 5000 Edelweiss Flexi Cap - 6000 Franklin India Focussed Fund - 2000 HDFC Midcap Fund - 2000 Mirae Multicap Fund - 3000 Mirae Midcap Fund - 11000 Mirae Emerging Bluechip Fund - 8000 Nippon India Multicap Fund - 17500 Total Monthly SIP - 58500 I wish to accumulate around Rs 3 Crores in next 10 years. Kindly suggest on the monthly SIP requirement and the funds in my portfolio.

Ans: You may continue, review after an year

Ans: Hello Rishu, thanks for writing to me. The funds you invest in are good funds. As you want to increase your investment by Rs.9,000 every month, you can consider beginning investments in:

1-Edelweiss NIFTY Quality 100 30 Index Fund: Rs.3,000 per month
2-SBI Focused Equity Fund: Rs.3,000 per month
3-Motilal Oswal Focused Fund: Rs.3,000 per month.

Ans: It's great that you're investing your monthly surplus in SIPs to build your wealth.

You have a well-diversified portfolio and the funds in your portfolio are performing well in the current market scenario. In the finance planning of any portfolio, we consider many factors, including client age, risk profile, current asset allocation, etc.

With your existing accumulated bulk investments of Rs 9.06 lakhs and ongoing SIPs of Rs 20,000 you will be able to accumulate the corpus after 9 years (2033) of Rs 64 lakhs with expected returns of 12%.

To achieve your wealth target of Rs 1 crore, it's advisable to increase your current investments. Considering your existing bulk investment of Rs 9.06 lakhs, an additional monthly investment of approximately Rs 39,000 is required. As you are already contributing Rs 20,000 per month through SIPs, an incremental SIP amount of around Rs 19,000 would be required.

Ans: Hello;

Since you have moderate risk profile, I propose the following type of funds and respective sip allocation;

1. Flexicap type mutual fund:15 K
PPFAS flexicap fund
2. Large cap type mutual fund :15 K
ICICI Pru Bluechip fund
3. Large and Midcap type mutual fund: 15 K
Mirae Asset Large and Midcap fund

This will ensure your exposure to large caps is high, mid caps is medium and small caps is low.

For further risk moderation you may also consider hybrid funds like BAFs and aggressive hybrid equity oriented funds but the time horizon may need to be extended in that case.

This SIP(45 K) over 10 years will only yield you a corpus of 1 Cr.

If you are aiming 2 Cr in 10 years then I would recommend you to either double the sip amount to 90 K from 45 K or top-up the sip amount of 45 K by a minimum of 17% each year upto 10 years to reach your intended corpus of 2 Cr.(12% moderate return considered from pure equity mutual funds)

Happy Investing;

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