Hi, I am investing 24,000 as a SIP in following MF schemes since 2020.
1. HDFC Taxsaver - 5000
2. HDFC retirement saving - 2000
3. Mirae asset large cap fund - 3000
4. Axis small cap fund - 2000
5. Axis mid cap fund - 2000
6. Axis bluechip fund - 2000
7. Franklin india feeder - US Opp fund - 2000
8. Quant active fund - 3000
9. Parag Parikh flexi cap fund - 3000
Please advise if I need to make any adjustments. I want to make corpus of 1 CR by 2030.
Ans: Dear Surya,
It's great to see that you've been disciplined with your investments since 2020. Your portfolio comprises a mix of tax-saving, retirement, large-cap, mid-cap, small-cap, and international funds, which is a good sign of diversification.
Considering your goal of accumulating a corpus of ₹1 crore by 2030, let's look at your current investment approach and see if any adjustments are needed.
First, let's assume an average annual return of 12% on your investments, which is reasonable for equity-oriented mutual funds in the long term. With your current monthly SIP of ₹24,000, you will have invested ₹2,88,000 annually. By 2030, which is 7 years away, you would have invested ₹20,16,000 in total.
Using the assumed 12% annual return, the future value of your investment by 2030 would be approximately ₹33,38,000. This is significantly short of your ₹1 crore goal.
To achieve your target, you would need to increase your monthly SIP amount. Here's what you can do:
Review your financial situation and identify any areas where you can increase your monthly investments. You may need to invest around ₹50,000 per month to achieve ₹1 crore by 2030, assuming the same 12% annual return.
Reassess your portfolio and its asset allocation. While your current allocation seems well-diversified, it's important to ensure that it's aligned with your risk tolerance and investment horizon. You may need to make some changes to improve the potential for higher returns. Consider discussing this with a financial advisor to ensure your portfolio is optimized for your goals.
Regularly review your investments and their performance. It's essential to keep track of how your mutual funds are performing compared to their benchmark indices and peers. If you find any underperformers, consider replacing them with better-performing alternatives.
Remember that investing is a long-term journey and requires patience, discipline, and regular reviews. It's important to stay committed to your investment plan and make adjustments as needed to reach your financial goals.
Wishing you the best on your journey to ₹1 crore by 2030!
Warm regards,
