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Can I reach my financial goals with current investments

Please find the details pertaining to my portfolio and advise me to build my corpus. My objective is to build a corpus of Rs. 1 Crore after 5 years. Kindly evaluate the choice of my funds and let me know how much amount I will be getting after 5 years with the help of these investments. If this much is not sufficient then how much do I need to invest. The details of my present portfolio follow as :- BSL Frontline Equity Fund (Large Cap) - 4000, ICICI Pru Focused Blue Chip Equity (Large Cap) - 4000, SBI Blue Chip Fund (Large Cap) - 4000, HDFC Midcap Opportunities Fund (Mid Cap) - 5000, DSPBR Micro Cap Fund Regular (Mid Cap) - 5000, Sundaram Select Midcap Fund (Mid Cap) - 2000, Franklin India Smaller Cos. Fund (Mid Cap) - 6000, BSL Banking & financial services (Sectoral) - 5000, Reliance Equity Opportunities Fund (Flexi Cap) - 4000, Reliance Small Cap Fund (Flexi Cap) - 2000, SBI Magnum Multicap Fund (Flexi Cap) - 5000, HDFC Growth Fund (Flexi Cap) - 5000, ICICI Prudential Value Discovery Fund (Value Style) - 8000, BSL Pure Value Fund (Value Style) - 4000. Lump Sum - Public Provident fund (Debt) - 500000, ELSS Mutual Fund (Equity) - 950000. Should I continue with these funds or do I need any changes please suggest. Also suggest some funds for lump sum investment? Planning As on Year 2014 - For Study of My Son - 5000000 SIP 8000, For Marriage of My Son - 5500000 SIP 5000, Amount Required After Retirement - 30000000 SIP 15500?

Apr 17, 2017 by Bishwanath Singh,   |   Financial Planning

1. Currently you are investing Rs 63,000 per month through SIPs and your investment horizon is 5 years. You have selected funds from large cap, mid & small cap, diversified and sectoral funds and your portfolio is quite aggressive. You can expect an annual XIRR return of 12.5% - 15% over 5 years investment horizon and based on that following could be the corpus amount –

@12.5% return – Rs 53 Lakhs

@13% return – Rs 53.50 Lakhs

@12.5% return – Rs 55 Lakhs

@12.5% return – Rs 56.50 Lakhs

Therefore, even of you get 15% returns, you are still short of your target corpus of 1 Crore

With regards to the fund selection, we think you should change Reliance Equity Opportunities with Reliance Top 200 Fund. Similarly, you may change HDFC Growth fund with HDFC Midcap Opportunities Fund.

2. For lump sum investments you can go with diversified equity funds. Please check the top performing diversified funds from here https://www.advisorkhoj.com/mutual-funds... You can invest in Birla Sun Life Advantage Fund, Kotak Select Focus Fund, ICICI Prudential Multi-cap Fund or DSP BlackRock Opportunities Fund.

You should continue with your PPF investment and ELSS investments.

3. You want to achieve 3 important financial goals and already doing SIP for that. Let us now see if the current SIP amount is sufficient to help you reach the respective financial goals?

Son’s study – time 12 years. Required fund 50 Lakhs and current Monthly SIP Rs 8,000. Assuming 12.50% annual return you will be able to create a corpus of only 27 Lakhs. Therefore, you should start additional monthly SIP of Rs 6,900 for 12 years period.

Son’s marriage – time 19 years. Required fund 50 Lakhs and current Monthly SIP Rs 5,000. Assuming 12.50% annual return you will be able to create a corpus of little less than the target corpus of 50 Lakhs. But, if you do additional monthly SIP of only Rs 500 for 19 years period then you achieve this goal easily.

Your retirement - time 19 years. Required fund 3 Crores and current Monthly SIP Rs 15,500. Assuming 12.50% annual return you will be able to create a corpus of only 1.45 Crores. Therefore, you should start additional monthly SIP of around Rs 16,000 for 19 years in order to achieve the retirement goal of Rs 3 Crores.

Hope the above helps you in planning your finances and reach your respective financial goals.

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