Hello Sanjeev ji, hope you’re doing good. I have the following MFs running (except SBI, all are barely 6 months old) for which I want your advice and guidance on change of scheme or reshuffling of amount or whatever. SBI Contra: 15k per month SBI Small Cap: 20k per month SBI Equity Hybrid: 5k per month Quant Small Cap: 25k per month Quant Mid Cap: 10k per month Quant Flexi Cap: 8k per month Tata Digital India Fund: 12k per month Nippon India Growth: 5k per month Nippon India Nifty Smallcap 250: 2.5k per month Parag Parikh Flexi Cap: 7k per month Motilal Oswal Nasdaq 100: 5k per month ICICI Technology: 5k per month ICICI Transportation & Logistics Fund: 2.5 k per month HDFC Transportation & Logistics Fund: 5k per month UTI Flexi Cap: 5k per month Total investment: 1.34 Lac per month My goal is to create a corpus of about 3 cr in next 7 yrs. please suggest if I’m on the right track. Recently I did the portfolio balancing and terminated Axis MF schemes as they were not yielding good returns. Btw, my existing investments in MFs have already created a corpus of 30L.
Ans: Currently, your portfolio is over-diversified in similar AMCs and funds strategies. You have sectoral and thematic funds in your portfolio, which can be risky due to a lack of diversification, higher volatility, dependence on fund managers, and timing sensitivity. We recommend you to rebalance your portfolio and reduce your exposure to similar category funds.
According to the above data, the current ongoing SIP is Rs. 1,34,000, and the total corpus is Rs. 30 Lakhs.
Since you have an equity-oriented portfolio and your ongoing SIPs are invested in equity funds with a long term horizon (7 years), we are assuming a 12% rate of return for the portfolio. According to our calculation, you will accumulate a total corpus of Rs. 2.44 Crore with the current investments of Rs. 30 lakhs and Rs. 1.34 Lakhs SIP after 7 years. To meet your goal, we recommend you to increase your SIP by approx. Rs. 46,000 i.e. a total SIP of Rs. 1,80,000 or make a lump sum investment of Rs. 25 Lakhs at present.
