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.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This article was originally published on February 15, 2011.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
