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37-Year-Old Investor Seeks Portfolio Advice for Rs.1 Crore Goal in 9 Years

Mutual Fund Expert - Answered on Aug 13, 2024

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more

Question by Ravi on Aug 03, 2024Hindi

My name is Ravi Verma, and I'm a 37-year-old investor. I have been investing in the following mutual funds for the past year, with a monthly investment amount ranging between 60k-90k. I plan to continue these investments for the next 9 years, aiming to reach a goal of 1 crore+. Could you please review my portfolio and advise if any changes are required or if it's good to continue as is? Current SIPs (?8k-10k per month each): HSBC Small Cap Fund - Direct Plan - Growth Aditya Birla Sun Life PSU Equity Fund - Direct Plan - Growth HDFC Small Cap Fund - Direct Plan - Growth Quant Small Cap Fund - Direct Plan - Growth HDFC Balanced Advantage Fund - Direct Plan - Growth SBI Contra Fund - Direct Plan - Growth Nippon India Growth Fund - Direct Plan - Growth Quant ELSS Tax Saver Fund - Direct Plan - Growth HDFC Retirement Savings Fund - Equity - Direct Plan - Growth Equity - Index Fund: Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - IDCW Groww Nifty Smallcap 250 Index Fund - Direct Plan - Growth Quant Multi Asset Fund - Direct Plan - Growth I don't have much knowledge in mutual funds; I chose these based on their past returns. I'm concerned about whether I'm on the right track or if any adjustments are necessary. Thank you for your guidance. Best regards, Ravi Verma

Ans: Hello Ravi & thanks for writing to me.

I see too many funds in your portfolio, which I believe can dilute your returns.

Given your age & objective, you may want to reconsider your investments in the Balanced Advantage Funds & Multi Asset Funds & instead start allocating to a multi cap fund.

I also notice investments in a PSU Equity Fund. While the PSU funds have given good returns recently, as thematic funds, you must not have a large chunk of your portfolio in them. Investing in thematic funds can generate alpha but thematic funds can also underperform.

If you can provide a percentage breakup of the investments, I may make other recommendations.

Asked on - Aug 30, 2024 | Answered on Aug 30, 2024

Thank you sir for your time and answer , here is percentage breakup of my investment : i don't know much more about category , while investing to those funds i just saw return i did invested. 31% in Stocks [ +4.69% Return ] last 6 Months 59% in MF [ +13.62% Return ] 10% in FD [+1% Return ] My Goal is to after 10 Year , Monthly Income 1L in my account. Willing to Invest 1L - 2L per month how can i plan like that sir ? please suggest Thank you sir

Ans: Hi Ravi, taking a conservative approach, to generate a 1 Lakh per month income via Mutual Fund SWP's, you will need to have a corpus of around 2 Crore with a SWP at 6%.

Assuming your current investments are able to generate 12% XIRR, you will need to invest around Rs.85,000 every month.

As you willing to invest around Rs.1 Lakh, you should be able to generate the Rs.2 Crore corpus.

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