I just got my first job and have been recommended schemes by my senior at work. I have no knowledge about mutual funds and have started investing from August 2019. This is my portfolio: lump sum every three months in SBI Small Cap fund ( ₹1,000), Axis Blue Chip fund ( ₹5,000), Axis Short Term fund ( ₹10,000) and Aditya Birla Sun Life Liquid fund ( ₹20,000). I have ongoing SIPs in Mirae Asset Hybrid Equity fund ( ₹1,250), Mirae Asset Tax Saver fund ( ₹4,000), Mirae Asset Blue Chip fund ( ₹5,000) and Axis Long Term Equity fund ( ₹5,000). These are my goals— ₹3 lakh for marriage in two years; ₹15 lakh in five years; ₹1 crore in 25 years for retirement. My risk appetite is moderate.
You have two different investment plans going on—one at a quarterly frequency, and another at a monthly frequency. To make matters simple, let’s see how much, on average, you are investing every month. Given the figures that you have provided, I can see that you are investing ₹27,250 a month on an average. Of this, a little more than a third is going to debt funds and the rest are going to equity funds. You have relatively small short- and medium-term goals. You can easily achieve these goals with the quantum of investing you are doing presently. And what’s more, you will likely significantly overshoot your retirement target as well. You will likely have upwards of ₹3 crore by the time you retire if you keep with this current rate of investment. However, that is just fine given that inflation will ensure that the value of ₹1 crore is definitely not what it is today when you look at it 25 years later.
Regarding your portfolio, as I said, it’s a balanced portfolio with two-thirds (about 60%) going to equity and the rest to debt funds. There is a concentration of investments in two fund houses—Axis and Mirae—that you may want to keep an eye on. These are good fund houses and the funds you have chosen are decent, but it is always better to diversify across major fund houses such as ICICI Prudential and Franklin Templeton as well. But, that’s a minor point. The main thing is that you have a good portfolio and, importantly, a good amount being invested and these should see you through to your goals just fine.
Srikanth Meenakshi is co-founder and former chief operating officer, FundsIndia.com. Queries and views at firstname.lastname@example.org