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Setting Goals

Investing regularly through SIPs over the long run should achieve your target

I want to build a corpus of Rs 2 crore in 15 years. I have monthly SIPs of Rs 5,000 in seven funds. Can my goal be achieved?
Giri

Investing regularly and systematically is the way to wealth creation. Your target of Rs 2 crore in 15 years is not impossible to achieve. A portfolio earning 14 per cent can achieve the target in 15 years. Your fund selection is good. Your portfolio has the core large-cap and large- and mid-cap funds and it also has the satellite component, in the form of mid- and small-cap funds, sector funds and other special funds.

Your portfolio of seven funds has 93 per cent equity exposure across 157 stocks with the large-cap growth style. However, you need to reconsider Reliance Diversified Power. This fund has done well in the past, but lately has been losing ground. The narrow mandate that it carries works well when the power sector cycle picks up. There is a lesson for you from your investments; track the performance of your portfolio at least once a year. This way you will be able to track its progress and make changes if necessary to realign the investments to achieve your goal.



Fund Scheme  Category  Fund Rating  3-year return (%)  5-year return (%)
DSPBR Top 100 Equity Large Cap ***** 7.96 17.84
HDFC Top 200 Large & Mid Cap ***** 11.08 18.75
IDFC Premier Equity Plan A Mid & Small Cap **** 10.25 22.19
Reliance Growth Mid & Small Cap **** 5.84 16.44
ICICI Prudential Infrastructure Infrastructure **** -0.96 17.21
Reliance Diversified Power Equity: Others Not Rated -0.25 21.59
Tata Life Science & Technology Equity: Others Not Rated 15.25 13.26
Annualised returns as on February 14, 2011 Ratings as on January 31, 2011


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