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I am 46-years-old and am invested in systematic investment plans (SIPs) in the following mutual funds: Canara Robeco Emerging Equities Fund-Direct Growth ( 1,000); HDFC Index Sensex Direct Plan-Growth ( 1,000); Mirae Asset Tax Saver Fund-Direct Growth ( 1,000); Parag Parikh Flexi-cap Fund-Direct Growth ( 1,000); Axis Bluechip Fund-Direct Plan Growth ( 500); Invesco India Contra Fund Direct Growth ( 1,000); and Quant Active Fund-Direct Growth ( 1,000). Kindly advise if this is okay in the current market to achieve the goal for child education ( 10 lakh) and their marriages ( 10 lakh). For how many years do I need to keep investing every year, and how much do I increase my investment amounts in SIPs. Also, should i diversify funds in equity, debt, tax saver and hybrid after one year?

—Anand Kavlekar

More information about your child’s age and time horizon for these goals would have helped to share more detailed inputs on your query. If we assume you want to accumulate 10 Lakh in eight years for your child’s education, then the present SIPs of 6,500 can work for you. At the same time, if your child’s marriage goal is for 15 years, i.e. seven years after the education goal, then you will be able to accumulate 8 lakh by investing 6,500 every month after completing the education goal.

However, if you increase your SIPs by 5% every year, you will be able to achieve both these goals of 10 lakh for your child’s education and marriage after eight  and 15 years respectively.

The funds that you are investing in at present are good, and you have also tried to diversify these investments across index, large-cap, large- and mid-cap, flexi-cap, multi-cap and value funds. Since your goals are long-term you can continue to invest in these funds through SIPs without issues.

Harshad Chetanwala is founder, MyWealthGrowth.com. Have personal finance queries? Email mintmoney@livemint.com.

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