I am 29 years old and am investing in Fidelity Tax Advantage, HDFC Prudence and IDFC Imperial Equity through SIP approach. I can invest Rs 8,000 in addition to this every month. Please suggest funds that I can invest in; I wish to make these investments to accumulate Rs 1 crore in 20-25 years and Rs 15 lakh in ten years for my son.
- Monu K
Investing in equity mutual funds through systematic investment plans is the best way to achieve long-tem wealth creation. You have a monthly investible surplus of Rs 15,000 to achieve both your goals which are some years to go. You are being conservative with your goals; you can achieve both these goals with your investments if the portfolio ears an annualised 12 or 15 per cent. This should be possible with a mutual fund portfolio comprising good performing funds.
| ||||||||||||||||||||||||||||||||||||||
You have selected good funds that offer you tax benefits as well as equity exposure. All the three funds selected by you are highly rated and have a performance track record which is impeccable. However, where it lacks currently is diversification which will help you achieve your financial goals. We suggest you add a large- and mid cap fund such as HDFC Top 200 and mid- and small-cap fund such as DSPBR Small and Mid Cap fund to your existing portfolio so that you get a well diversified portfolio across market cap and style.
A portfolio made of five funds is manageable and you should be able to monitor its progress easily at least once a year. Make sure you continue investing regularly and evaluate the portfolio performance as you approach your financial goals.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This article was originally published on April 13, 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.
