I am 40 years old from Surat, Gujarat. I have four people in my family. My mother (62 years), my wife (34 years), my daughter (14 months) and me. I am the only earning person in my family. Currently, I am working as a manager in a logistics company. my current salary is 60,000/- per month and I am investing 10,000/- per month in mutual funds since October 2018 (details are mentioned in the table below) and 500/- per month in Post Office Recurring Account and 1000/- per month for my daughter in Sukanya Yojna in post office. i wish i had a fund 2 crore in 10-15 years, what should I do?
i invest 2,500 per month in SBI Small Cap Fund, HDFC Mid Cap Opportunities Fund, Franklin India Small Companies Fund. I have 1,250 each in ICICI Pru Small Cap Fund, Tata Flexi Cap Fund. I have also opened a recurring account in the post office where I had put 500 rupees a month for my 8 month old daughter and a Sukanya account in the post office. I have invested 10,000 so far in SSA.
Please refer to my above investment and advise whether it needs to be modified? If it needs to be modified, please suggest some mutual funds. Please suggest an investment ratio also. Also, advise me is there any difference between growth plan and direct plan in mutual funds?
name withheld
Assuming 12% CAGR return over the next 15 years, it is essential that you invest 40,000 per month through Systematic Investment Plans (SIPs) to create a corpus of 2 crores. Your monthly SIP amount at present 11,500 will not be enough to achieve the desired goal. Hence, you either need to increase the SIP amount substantially or increase the investment horizon.
As far as your current investment in Mutual Funds is concerned, it is tilted towards the small and mid cap segment. It is advisable to invest a major portion of the portfolio in equities from large- and mid-cap, flexi-cap, mid-cap and value fund categories.
You can choose between Canara Robeco Emerging Equity Fund, Axis Growth Opportunity Fund, Parag Parikh Flexi Cap Fund, UTI Flexi Cap Fund, Mirae Asset Mid Cap Fund, Nippon India Growth Fund, Kotak Small Cap Fund and IDFC Sterling Fund to split the SIP amount equally. can consider. value fund.
As far as your investment in Sukanya Yojana is concerned then you can continue with it.
There is a difference between a regular plan and a direct plan, investments made through some brokers/advisors are called regular plans while investments made directly with AMCs (without any broker/consultants) are called direct plans.
(Sanjeev Bajaj, Joint Chairman and Managing Director, Bajaj Capital. Please send questions and thoughts to minmoney@livemint.com)
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