Consider your risk appetite before setting a target corpus1 min read . Updated: 10 Jun 2020, 11:57 PM IST
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?
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?
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