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Define Your Goals

Having a goal adds purpose to your investments & allows you to track the progress better…

I am a self employed professional and can invest Rs 20,000 to Rs 25,000 a month in mutual funds. How should I distribute it in different funds to get max results over a ten year period?
- Kshitij Prakash

It is encouraging to note your desire to invest up to Rs 25,000 a month in mutual funds. As a first step you should be clear about the sum that you can comfortably invest each month. This will help you be committed to investments over the next ten years. You should also have a goal to invest for, which should quantify the sum you wish to accumulate at the end of the investing phase. Think of a sum that you will need at the end of ten years; say a corpus of Rs 50 lakh in ten years for a house. This will help you have a purpose to invest for and track the investment’s progress.

As your investment horizon is of ten years, we have shortlisted a portfolio of five funds for you that collectively has a 70 per cent equity exposure. You can have equal investment allocation to each of these funds. Collectively the portfolio is well diversified in style and number. All you need is to track its performance at least once a year to ascertain its progress.

Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
Reliance Equity Opportunities Multi Cap **** 14.64 14.82
ICICI Prudential Dynamic Large & Mid Cap **** 10.22 15.27
HDFC Top 200 Large & Mid Cap ***** 13.09 17.68
Fidelity Equity Large & Mid Cap **** 10.54 15.31
BNP Paribas Bond Regular Debt: Income ***** NA NA
Returns as on May 20, 2011 Ratings as on April 30, 2011

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