Which mutual funds are good to create a corpus of ₹60 lakh for kids' education1 min read . Updated: 15 Nov 2020, 11:20 AM IST
- I have accumulated ₹6 lakh
- I can invest ₹15,000- 18,000 more every month
I am a private sector employee and have two kids. The elder one is nine years old and the younger one is five years old. I am investing in Franklin India Prima Fund, Kotak Standard Multicap Fund, DSP World Gold Fund, HDFC Top 100 Fund. I have accumulated ₹6 lakh in these funds. I want to save more for my kids' education. I want to save at least ₹30 lakh for each child's higher studies at 18 or 19 years of age. Is my portfolio fine? Will these mutual funds help me to reach my goal? I can invest ₹15,000- 18,000 more every month. Please suggest the best mutual funds for my kid's higher education.
By Divam Sharma, Co-Founder, Green Portfolio
Considering that your investment goal is minimum 10 years away, we suggest that you invest your capital in equity mutual funds and then start shifting your capital to GILT mutual funds, three years before your goal.
Considering a 10% compounding and your time horizon of minimum 10 years, investing ₹18,000 per month can easily help you achieve your goal of creating ₹30 lakh corpus each for both your children.
Franklin India Prima Fund is a mid cap fund. We would suggest you to switch to Axis Midcap Fund considering a better portfolio and performance track.
You can continue your investments with Kotak Standard Multicap Fund and DSP World Gold Fund.
You can switch out from HDFC Top 100 Fund to HDFC Index Fund (Sensex Plan)- Growth option.
We suggest that you should also add a small cap fund to your portfolio, i.e. Axis Small Cap Fund.
You should also regularly assess your investments and can also take guidance from a SEBI Registered Research Analyst or Investment Advisor.
(Views as expressed by the investment expert are his own.)