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Consider your risk appetite before setting a target corpus

You should be able to reach your target if you invest 10,000 per month and assuming an annual 12% returns. However, your portfolio needs restructuring

I am 28 years old, have a moderate risk appetite and want to generate a corpus of 20 lakh in 10 years. Can you suggest some funds?

—Pooja Yadav

If you invest 10,000 a month, then you can have around 20 lakh in 10 years. However, to generate this kind of return, you would need to turn to a higher-than-moderately-risky portfolio with a good concentration in equity funds. You could go with funds such as ICICI Prudential Focused Bluechip, Kotak Standard Multicap and Mirae Asset Emerging Equity with a 20% debt allocation going to a fund like DSP Liquidity fund or SBI Magnum Low duration fund.

I am 28 years old and want to build a portfolio through equities. I am investing 6,000 per month in the following funds via SIPs for the last three years: 1,500 each in Kotak Standard Multicap and L&T Midcap; 1,250 each in DSP Equal Nifty 50 and DSP Nifty Next 50 Index; and 500 in L&T Emerging Businesses. All are growth options. My goal is to have 30 lakh by the age of 40. Should I increase my amount to 10,000. Also, is my portfolio well-diversified?

—Dheeraj Purohit

You should be able to reach your target if you invest 10,000 per month and assuming an annual 12% returns. However, your portfolio needs restructuring.

You could stop SIPs in DSP Equal Nifty 50 and L&T Emerging Business. Given the way stocks are weighted in Nifty, an equal-weight index can underperform. Hold all the investments made so far in these funds.

You could run your SIP in the following funds— 3,000 each in DSP Nifty Next 50 and Kotak Standard Multicap. You can increase your SIPs in L&T Midcap to 2,000 and invest 2,000 in IDFC Bond Short Term Plan.

Srikanth Meenakshi is co-founder, PrimeInvestor.in

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