Can I achieve my financial goals with my current mutual fund investments

I am the regular follower and I think it has really the change the way I used to think before about investments. Initially I used to put money randomly in various funds but now started with Goal based investing as suggested in various articles. Continuing to that I tried to create the portfolio as per my goals. Please review it and let me know your feedback, suggestions on remapping etc. Child Education: 7 years from now: Current cost of goal is around 20 lacs. Active running SIP's for this Goal as following:- 1. Kotak Multicap: Current investment: Rs. 25000, SIP: Rs. 10000 (split in 4, 2500 each every month on various dates); 2. Mirae Emerging: Current investment: Rs. 492000, SIP: 10000 (3 sips on various dates); 3. Relaiance liquid fund: Current investment: Rs. 257000. In addition to above I have some investments done randomly quite back, so I tagged them to my sons education goal instead of closing them. 1. Aditya Birla hybrid 95 fund: Rs. 96000, 2. SBI Hybrid Fund : Rs. 60000, 3. Motilal Oswal Multicap 35 Fund: Rs. 50000. Also I have recurring deposit running for Child education tenure 5 years from now Amount is Rs. 10000 each month, maturity 7 Lacs after 5 years. Retirement Planning: more then 15 years from now. Goal Amount 2 CR. 1. Parag Parikh Long Term Equity: Current investment: Rs. 25000, SIP: Rs. 8000 (split in 2, 4000 SIPs every month on various dates); 2. L&T Emerging business Fund: Current investment: Rs. 75000, SIP: 8000 (split in 2, 4000 SIPs every month on various dates). In addition to above I have some investments done randomly quite back, so I tagged them to my sons education goal instead of closing them. 1. Reliance Small Cap: Rs. 1 Lac, 2. Mirae Tax Saver: Rs. 32000, 3. ICICI Banking & Financial Fund: Rs. 40000, 4. EPF current contribution: Rs. 8000 per month, planning to increase my contribution more on it. Current worth: 10 Lacs, also I have recently started adding Nifty and Junior Nifty ETF, current worth: Around 1 Lacs. I am adding them on every 3-5% dip. As far as liabilities are concerned, I don't have any kind of loans on me. Please expert review my portfolio, I am more concerned about Child education. Please provide your valuable feedback, any addition, substraction etc?

Aug 24, 2019 by Manish, Mumbai  |   Financial Planning

From your query we could find that you have two goals – 1) Child education after 7 years from now, the current cost of which is Rs 20 Lakhs 2) Goal amount of 2 Crores for your retirement but you have not mentioned whether it is at current cost or future cost?

Please note that education inflation in India is approximately 15%, therefore, the future cost of your child’s education would be around Rs 53 Lakhs – Please refer this tool

To meet the above goal of Rs 53 Lakhs after 7 years, you should have minimum Rs 40,000 worth of monthly SIPs in equity mutual funds (we have assumed 12% annualized returns). From your query, it is not very clear what your current monthly SIP amount is? But since you now know the required SIP amount you may plan accordingly if there is a shortfall. You have also mentioned about some lump sum investments in mutual funds, these are around Rs 10 Lakhs. If we assume that you will remain invested in these funds for next 7 years and the returns are at 12% per annum then, you can have a corpus of around Rs 22 Lakhs

If this amount is also used for your child’s education goal then you should plan for creating a corpus of Rs 31 Lakhs only (Rs 53 Lakhs – Rs 22 Lakhs) through monthly SIPs – Rs 24,000 worth of monthly SIPs will be enough to meet this goal.

Retirement goal of Rs 2 Crores after 15 years – To meet this goal you should have minimum monthly SIP of Rs 40,000 (assuming 12% return from equity mutual funds). Your current monthly SIPs are enough to meet this goal after 15 years. We have assumed that the Rs 2 Crore goal amount is required at your retirement. But if it is at current cost, then try this tool to know the future value of this goal

Your overall fund selection looks good but you must review their performances annually. We also suggest that you should consolidate your investments in few good funds. Currently you have too many funds and that can become unmanageable in the long run.

We could have replied better if your query was more clearly written. Any ways, you can put your queries further by replying through the DISQUS comment section.

Wishing you mutual fund investing success!

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