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    Will my mutual fund investments lead me to my financial goal?

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I am 26 years old. I have been investing about 25% of my net salary in these mutual funds through SIP since Jan 2017. Here's my portfolio:
    Nippon India US Equity Opportunities Fund: Rs 15,000
    Tata Digital India Fund (dividend reinvestment): Rs 15,000
    SBI Banking & Financial Services Fund: Rs 15,000
    ICICI Prudential Bluechip Fund: Rs 3,000
    SBI Bluechip Fund: Rs 2,000

    My aim is to create a corpus of Rs 1 crore to Rs 2 crore by the age of 35-36.

    I have a high risk appetite. Also, I would like to add an arbitrage fund soon as I have an excess of 10% of my net salary. Will my investment lead me to the goal I have set or will I have to change something?
    --Vijayan T

    Deepali Sen, Founder, Srujan Financial Advisors, responds:


    If this portfolio were to fetch 12% returns, your inputs (amount invested), and tenure (long term investments in equity mutual fund schemes should be in excess of 7 years) are in line to make a corpus of Rs 1.15 crore.

    However, your exposure to sector specific funds (international, banking and IT) is very high. Even for a high risk investor, playing only for select sectors in such high commitment may not make sense. I would suggest that you invest around 65-75% of your portfolio in large cap funds, 15-20% across mid caps and the balance (around 5%) in small caps. The choice of large caps is fine and you can increase your exposure accordingly. Regarding mid caps, you can look at HDFC Mid Cap Opportunities Fund, Axis Midcap Fund and Franklin India Prima Fund. For small cap funds, HDFC Small Cap Fund, Axis Small Cap Fund and SBI Small Cap Fund can be looked at.

    SBI Bluechip Fund-Growth ★★★★★
    Things You should consider
    • Annualized Return
      for 3 year: 6.13%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.11 Years
    Things You should consider
    • Annualized Return
      for 3 year: 24.4%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.9 Years
    For your short term goals or for emergency funds you can invest in ultra short or short term funds like, Aditya Birla Sun Life Short Term Opportunities Fund, Franklin India Ultra Short Bond Fund - Super Institutional Plan, SBI Magnum Ultra Short Duration Fund (for a duration of 1 year) over arbitrage funds.
    (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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    1 Comment on this Story

    satya ranjan nayak407 days ago
    Around â ¹50k monthly sip good prospects for long term. Fund selection is good but two schemes in one categories quite optimistic you know. Currently change AMC reliance mf to Nippon mf, is a worry,performance lagging. So, invest with these following schemes, you can achieve your goal.
    Sip portfolio should as...
    1.sbi bluechip 20%
    2.franklin feeder us opportunities 10%
    3.parag parekh long term equity 30%
    4.sbi banking & finance 10%
    5.mirae assets bluechip 30%
    Your sip amount should allocate percentage wise.
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