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Building A Corpus

An aggressive portfolio that is diversified across style & numbers can help build a large corpus…

I want to invest Rs 40,000 per month for the next 15 years to build a corpus of Rs 2.5 to Rs. 3 crore. Can you suggest a portfolio of funds that I can invest in?
- Suman Saha

Your monthly investment of Rs 40,000 earning 12 per cent annualised returns will build a corpus of Rs 2 crore in 15 years. The same portfolio will be worth Rs 2.7 crore if the portfolio earns 15 per cent annualised returns.

You need a portfolio of six funds that form an aggressive portfolio with 80 per cent equity allocation and are well diversified in both style and number to help you achieve your goal. Have 25 per cent allocation in both HDFC Equity and Fidelity Equity, 15 per cent allocation in both IDFC Premier Equity and DSPBR Micro Cap Regular. The balance can be distributed 10 per cent each in the remaining two funds i.e BSL Dynamic Bond Ret and AIG World Gold. Make sure you track the performance of this portfolio and make any necessary changes to the funds that you have selected in case they are not progressing towards your goal.

Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
AIG World Gold International Not Rated NA NA
BSL Dynamic Bond Ret Debt: Income **** 8.68 8.79
DSPBR Micro Cap Reg Mid & Small Cap **** 10.19 NA
Fidelity Equity Large & Mid Cap **** 10.82 15.75
HDFC Equity Multi cap ***** 15.88 18.01
IDFC Premier Equity  Mid & Small Cap ***** 13.81 21.92
Returns as on May 25, 2011 Ratings as on April 30, 2011

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