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Can my mutual fund portfolio achieve my goals of retirement and children's education?

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Last Updated: Jul 03, 2019, 04.47 PM IST
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I am an NRI. I am 38 years old. I have been investing Rs 1.20 lakh per month through SIPs for almost two years.
Franklin India Focused Equity Fund: Rs 30,000
Franklin India Prima Fund: Rs 10,000
Franklin India Feeder Franklin US Opportunities Fund: Rs 10,000
SBI Bluechip Fund: Rs 10,000
Mirae Asset Large Cap Fund: Rs 10,000
Mirae Asset Emerging Bluechip Fund: Rs 10,000
Axis Multicap Fund: Rs 10,000
Axis Bluechip Fund: Rs 10,000
DSP Midcap Fund: Rs 10,000
HDFC Mid-Cap Opportunities Fund: Rs 10,000

My investment horizon is beyond 10 years and risk appetite is above average.

I have two daughters(8 & 5 years), and these investments are for their education, marriage and my retirement. Estimated requirements will be Rs 50 lakh in 10 years, Rs 50 lakh in 13 years, Rs 50 lakh in 15 years and Rs 3 crore in 17 years (I planning to retire at 55 years). Would appreciate if you can advise if I’ve an appropriate portfolio or should I make any changes to achieve the targets.

Assuming an annual return of 12 per cent, you must invest around Rs 21,500 every month to create a corpus of Rs 50 lakh in 10 years. Similarly, you should invest around Rs 13,300 and Rs 9,900 every month to create Rs 50 lakh in 13 and 15 years respectively. You must invest around Rs 44,915 every month to create your retirement fund of Rs 3 crore in 17 years. That means you are investing more than required to create your target corpus for various goals. However, we would like you to work with real numbers, inflation, and taxes to create realistic targets. The trouble with nice round numbers like rs 50 lakh and Rs 1 or 2 crore is that they may not be enough to take care of your future goals. If you think it is too much to handle, hire a financial planner.

If you have a high appetite for risk, you should be investing mostly in mid cap and small cap mutual fund schemes. You can also take a small exposure to large cap schemes if you want to diversify and reduce the overall risk in the mutual fund portfolio.

You are currently investing in three mid cap schemes, three multi cap schemes (one focused), two large cap schemes, and international scheme and large & mid cap scheme. As you can see, your portfolio is not sharply focused.
(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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