I am 44 years old. My goal is to create Rs 2 crore for my retirement at 60. My investment horizon is 16 years. My risk profile is moderate. I have been investing Rs 5,000 per month for the last five months via SIPs in the following schemes. All investments are in direct and growth plans.
Franklin Templeton Focused Equity Fund
ABSL MNC Fund
ABSL Equity Fund
HDFC Small Cap Fund
IDFC Dynamic Bond Fund
Mirae Asset Emerging Bluechip Fund
Mirae Asset Healthcare Fund
Franklin India Feeder US Opportunity Fund
Motilal Oswal Nasdaq 100 Fund
Should I change my portfolio to create a corpus of Rs 2 crore?
We always ask investors to choose mutual funds based on their objectives, outlook, and risk profile. Since you have a moderate risk profile, it is best for most of your organization to invest in multi-equity mutual funds. If you want to reduce your risk, you can also diversify and have a little exposure to large mutual funds.
Your current portfolio lacks focus. You are currently investing in a focused multi-cap scheme, MNC scheme, diversified multi-cap scheme, small-cap scheme, dynamic bond fund, large & mid-cap scheme, pharma scheme, two international schemes. It is not clear why you have a debt scheme in your portfolio. Also, small, large, and medium capital schemes do not fit your risk profile. Thematic schemes should be added only if you have a good understanding of the sector and can determine when to enter and when to exit them.
You need to reassess your risk profile and make sure you build a focused portfolio to maximize returns. If you are not sure how to do this, seek the help of a mutual fund advisor.
Assuming a 12% annual return on your investments, you may be able to build a Rs 2 crore by investing around Rs 39,637 every month for the next fifteen years. However, a word of caution. They always work with real numbers when it comes to counting a target group for their retirement. Find out your current annual living expenses and use the 6-8% annual inflation to see how much it will be in 15 years. Once you know your annual living expenses, you can multiply them by the number of years you are likely to live to meet your target group. Please note that this is a rough calculation. You can make it even better by adding the amount you expect to earn each year after retirement and the annual inflation rate.
Also Read: Apple iPhone 12 Mini with tiny 5.4-inch screen: Here's what to expect