I am 33yrs old and have been investing 20k SIP every month in the following funds for the last 10 months (I was investing 10k for 6 months before that): 1. Canara Robeco Bluechip Equity Fund Direct-Growth (3k) 2. PGIM India Midcap Opportunities Fund Direct-Growth (2k) 3. LIC Gold Direct-Growth (3k) 4. Parag Parikh Flexi Cap Fund Direct-Growth (3k) 5. HDFC Index S&P BSE Sensex Direct Plan-Growth (3k) 6. Mirae asset emerging bluechip fund Direct-Growth (2.5k) 7. Quant Tax Plan Direct-Growth (3.5k) In addition to this, I am putting 35k per month as VPF and 1lakh every year in NPS. I am a moderate risk taker. 1. Is this sufficient to build a 3cr corpus in the next 20 years? 2. Should I add a small cap MF to my portfolio and if yes, which one? 3. Is my portfolio over-diversified?
Ans: Given your investment strategy and goals, let's address your queries:
Building a 3 Cr Corpus in 20 Years: With disciplined investing and assuming an average annual return of around 12%, your current investment plan has the potential to build a significant corpus over 20 years. However, it's essential to periodically review your portfolio's performance and make adjustments as needed to stay on track towards your target.
Adding Small Cap MF: Adding a small-cap mutual fund can enhance diversification and potentially boost returns over the long term. Look for a well-managed small-cap fund with a consistent track record of performance and aligns with your risk profile.
Portfolio Diversification: While diversification is essential, your portfolio seems adequately diversified across different asset classes and market segments. However, review the performance of each fund regularly and ensure they remain aligned with your investment goals and risk tolerance. Avoid excessive diversification, as it can dilute returns and complicate portfolio management.
Consulting a Certified Financial Planner can provide personalized insights and recommendations tailored to your financial goals, risk tolerance, and investment horizon. They can help optimize your portfolio and develop a strategic plan to achieve your long-term wealth-building objectives effectively.
