Future Planning

With time on hand, invest in a multi-cap portfolio to achieve your long-term investment goals…


I am 38 and have a 3 year old daughter. I want to build a corpus of Rs 75 lakhs for her marriage and another Rs 75 lakh for my retirement. I plan to invest Rs 10,000 very month through SIPs in mutual funds to achieve my goals. Am I on the right track? Please suggest funds.
- Ajith N

It is encouraging to note your concern to save for your daughter’s future as well as yours. Both these gals are some time to go and you still have time on your hand to achieve these goals. To build a corpus of Rs 75 lakh in about 18 years for your daughter’s wedding you need to invest Rs 9,800 every month in a portfolio that earns 12 per cent return or Rs 6,800 if the portfolio earns 15 per cent. Likewise for your retirement which is 22 years to go when you turn 60, you need to invest Rs 5,800 every month if it earns 12 per cent annualised returns or Rs 3,630 if it earns 15 per cent.

Your current investment of Rs 10,000 may not be enough to achieve both your goals. However, this should not discourage you from savings. Remember, with age and experience your income will only rise and you will have investible surplus which you can invest to achieve your goals.

Select a portfolio of large-cap funds such as DSPBR Top 100 Equity or Franklin India Bluechip and large and mid-cap funds such as HDFC Top 200 and BSL Frontline Equity fund. You can build on the portfolio with mid- and small-cap funds as well as multi cap funds later on to get the necessary boost to returns.



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