Should I make any changes to my mutual fund portfolio?
If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Aditya Birla Sun Life Frontline Equity Fund: Rs 10,000
Aditya Birla Sun Life Focused Equity Fund: Rs 7,000
ICICI Prudential Bluechip Fund: Rs 7,000
Axis Bluechip Fund: Rs 10,000
HDFC Mid-Cap Opportunities Fund: Rs 3,000 k
L&T Midcap Fund: Rs 5,000
Axis Midcap Fund: Rs 5,000
Nippon India Small Cap Fund: Rs 5,000
Franklin India Smaller Companies Fund: Rs 5,000
Franklin India Focused Equity Fund: Rs 4,000
ICICI Prudential Equity & Debt Fund: Rs 9,000
HDFC Hybrid Equity Fund: : Rs 2,000
I am closely monitoring all these funds. Their current value is Rs 23 lakh. I can continue to invest for another eight years.
My main goal is to build a retirement corpus. After eight years, I am planning to settle in India and find a job and work till 55 years of age. I am expecting a monthly expense of Rs 25,000. For my children's education, I will need Rs 10 lakh after 10 years and another 10 lakh after 15 years. All are present values.
Have I selected good funds? May I continue with Aditya Birla Sun Life Focused Equity Fund and Franklin India Smaller Companies Fund? Can I achieve my goals with this investment? Any changes needed? My risk profile is moderately aggressive.
You are currently investing in three large cap mutual funds, two aggressive hybrid schemes, three mid cap schemes, two small cap schemes, one focused large cap and one focused multi cap scheme. Here are some general observations about your mutual fund portfolio. Your investments are scattered. A moderate to aggressive mutual fund portfolio should have multi cap schemes and mid cap schemes. The proportion of mid cap schemes would depend on how aggressive or how much extra risk you want to take for the extra returns.
Assuming an annual return of 12 per cent, you would be able to create a corpus of around Rs 1.76 crore at the end of eight years.
You must consider consulting a financial planner or a mutual fund advisor to stitch together a focused mutual fund portfolio. A financial planner would also help you to create a proper plan to achieve your future financial goals. It is always better to work with real numbers, inflation, taxes, etc to have a realistic target.