How do I save ₹60L in 10 years to fund my kids’ higher studies?

I am 43, and earn a monthly salary of ₹40,000. I will be needing ₹50-60 lakh to pay for my two daughters’ education over 10 years. I have been making sizeable amount of savings. I have been investing in mutual funds via systematic investment plans (SIPs): ₹1,000 each in Nippon India Small Cap Fund-Growth, ₹1,000 each in SBI Small Cap Fund -Regular-Growth, ₹1,000 each in Mirae Asset Emerging Bluechip Fund-Regular Growth, ₹1,000 each in Canara Robeco Small Cap Fund-Regular-Growth, and ₹1,000 each in Aditya Birla Sun Life Digital India- Growth. I also invest ₹500 a month in PPF and have fixed deposits of ₹3 lakh. I also invest ₹4,000 every month in recurring deposit besides ₹10,000 in stocks per month. Are the investments appropriate given my age and financial goals?

I would request you to review my portfolio and suggest if I need to make a change to achieve my goals within the timeframe.

—Name withheld on request

We would assume that you have factored in education inflation when you have indicated you need ₹50-60 lakh for both your daughters’ education in 10 years. Considering that you are saving on a regular basis in a combination of MFs and bank recurring deposits, and assuming that you are able to enhance your savings by 10% per annum, you should be able to achieve your targets.

However, your portfolio seems tilted towards small cap funds, with three such funds. While all small caps in your portfolio come with good track record, the portfolio seems to have too many of them, and thus, after considering your age we will advise you to trim your allocation in SBI Small Cap Fund and use the incremental allocation for a passively managed India Nifty 50 index fund. You may also consider replacing ABSL Digital India Fund, which is a thematic fund, with a passive international index fund.

These changes should help you achieve your goals and help align your portfolio with the current stage of your life.

Vishal Dhawan is a certified financial planner and founder of Plan Ahead Wealth Advisors.