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
Rs 1 crore, Rs 2 crore, or Rs 5 crore will not guarantee a cushy retired life to you. Why? The basic idea behind creating a target corpus is to ensure that returns or interest from it would be enough to take care of your expenses after retirement. Have you done the math to find out whether the big round figure would do that?
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.
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1 Comment on this Story
satya ranjan nayak252 days ago
As you mentioned, already you have six schemes in your portfolio. With monthly sip investment of Rs. 8.5k on a corpus 1.5cr , for 28 years, you can easily achieve, even more. On your current schemes, two changes need. Change both mirae assets bluechip & motilal oswal large & midcap to Invesco India growth opportunities. why ? Because both mirae assets tax saver & mirae assets bluechip having common stocks, portfolio overlap 78%. And also motilal large & mid is an unrated fund. No data available. Motilal Nasdaq 100 is also good international fund. you can invest in it. If your investment goal is long term , then you need not stay with axis bluechip, shift this scheme to axis multicap.
Now your realign portfolio is.
1.Mirae tax saver 5k
2.Axis multicap 1.5k
3.invesco growth opportunities 1k
4.Sbi smallcap .5k
5.motilal oswal Nasdaq 100 .5k