Will these mutual funds help my wife to create Rs 1.5 crore?
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Mirae Asset Tax Saver Fund: Rs 5,000 per month (Started last financial year)
Axis Bluechip Fund: Rs 1,000 per month (Started this financial year)
Mirae Asset Emerging Bluechip Fund: Rs 1,000 pm (Started in Nov'19)
Motilal Oswal Large and Midcap Fund: Rs 500 pm (Started in Nov'19)
SBI Small Cap Fund: Rs 500 per month (Started Jul'19)
This is for her retirement fund. We have a target of Rs 1.5 crore in the next 28 years. Also, we would like to start investing in the below fund Motilal Oswal Nasdaq 100 FOF: Rs 500 per month.
Please review whether the portfolio is on track to meet the target.
Assuming an annual return of 12%, you wife needs to invest Rs 5,500 every month to create Rs 1.5 crore at the end of 28 years. However, a word of caution: you have to include annual inflation to reach a realistic target. With the impact of annual inflation, your targets could become very large after a long period. For example, a goal of Rs 1 lakh today would be worth around Rs 5.11 lakh, after accounting for annual inflation of 6%, after 28 years. If you include the capital gains tax on equity mutual funds, it will climb even further. For more, view:
Why Rs 1 crore will not ensure a rich retired life?
A big round figure is no guarantee
You need to sharply define your risk profile. We are a bit apprehensive about such conservative to moderate, moderate to high definitions. Try to take an online quiz to define your risk profile and then realign your portfolio with it.