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I am 40 years old from Surat, Gujarat. There are four members in my family. My mother (62 Yrs), my wife (34 Yrs), my daughter (14 months) and myself. I am the only earning person in my family. Currently, I am working in a logistics company as a manager. My current salary is ₹60,000/- per month and I have been investing ₹10,000/- per month in mutual funds since October 2018 (details mentioned in the below table) and ₹500/- per month in a recurring account in Post Office and ₹1000/- per month for my daughter in Sukanya Scheme in post office. I wish to have a corpus of ₹2 crore in 10-15 years, what should I do?
I invest ₹2,500 each per month in SBI Small Cap Fund, HDFC Mid Cap Opportunities Fund, Franklin India Smaller Companies Fund. I have ₹1,250 each in ICICI Pru Small Cap Fund, Tata Flexi Cap Fund. I have also opened a recurring account in Post Office where I put in ₹500 a month and a Sukanya Account in Post Office for my 8-month daughter. I have invested ₹10,000 in SSA to date.
Kindly refer to my above-mentioned investment and advise whether it needs reshuffling? If it needs reshuffling, then please suggest some mutual funds. Please also suggest an investment ratio. Also, advise me if there is any difference between growth plans and direct plans in Mutual Fund?
Name withheld
Assuming a 12% CAGR return over the next 15 years, it is required that you invest ₹40,000 per month through systematic investment plans (SIP) to create a corpus of ₹2 crore. At present your monthly SIP amount of ₹11,500 will not be sufficient to achieve the desired goal. Hence, you either need to increase the sip amount substantially or increase the investment horizon.
As far as your existing investment in mutual funds is concerned, it is tilted towards small and mid-cap segments. It is advisable to invest a substantial part of the portfolio in the large- and mid-caps, flexi cap, mid-caps and value fund categories of equities.
You can look at equally dividing the SIP amount in Canara Robeco Emerging Equity Fund, Axis Growth Opportunity Fund, Parag Parikh Flexi Cap Fund, UTI Flexi Cap Fund, Mirae Asset Mid Cap Fund, Nippon India Growth Fund, Kotak Small Cap Fund and IDFC Sterling Value Fund.
As far as your investment in the Sukanya scheme is concerned you can continue with it.
There is a difference between a regular plan and a direct plan, the investment routed through some broker/advisors is termed as regular plan whereas the investment done directly with AMC (without any broker/advisor) is called a direct plan.
(Sanjiv Bajaj, joint chairman and MD, Bajaj Capital. Please send queries and views at mintmoney@livemint.com)
