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A mutual fund portfolio for a 30-year-old woman

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Last Updated: Feb 10, 2020, 11.03 AM IST
I am a 30-year-old woman. I want to start investing in mutual funds through SIPs to create wealth over the long term (retirement corpus). My risk profile is low to moderate and I am looking at a time-frame of 10 to 15 years. Kindly suggest if I should start with the below list of funds or do you want to suggest some changes. I am looking at investing Rs 25,000 per month. Please tell me how I should split the money per fund (for Rs 25,000 per month). It would be great if you can let me know the projected returns that I should expect in 10 to 15 years.

Mirae Asset Emerging Bluechip Fund - Direct Growth
Principal Emerging Bluechip Fund - Direct Growth
Canara Robeco Emerging Equity Fund - Direct Growth
Mirae Asset Large Cap Fund - Direct Growth
Kotak Standard Multicap Fund - Direct Growth
Motilal Oswal Multicap 35 Fund - Direct Growth
Reliance ETF Nifty-BeES
-Devismita Chakraborty

As a long-term investor with a low to moderate risk profile, you may consider investing in a mix of large cap mutual funds and multi cap mutual funds. The mix would depend on how safe you want to be. That is, if you want very low risk, the proportion of large cap mutual fund should be large in your portfolio. You just need two or three schemes in your portfolio. Here are our recommended schemes:

Best large cap mutual funds to invest in 2020
Best multi cap mutual funds to invest in 2020

You have chosen some schemes that are not suitable for your risk profile. You have chosen three large & mid cap funds. These schemes are meant for investors with a high risk appetite, as they invest at least 35% of their corpus in mid cap stocks. Mid cap stocks can be extremely volatile and risky. As said earlier, the multi cap and large cap schemes are in line with your risk profile.

You may hope for 12% annual returns from your equity mutual funds over a long period.

A suggestion: you may start with your proposed investments. However, after a few years, you should try to find out how much you may need every month to maintain your lifestyle or living standards. You can take your living expenses at that time and provide for inflation to calculate your target retirement corpus. This will help you to find out how much you need to invest every month to create the target corpus.

(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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