I am 29 years old and building a mutual fund portfolio for 15-20 years to build Rs 3-5 crore. I am investing Rs 5,000 each in ICICI Prudential Focused Blue Chip Equity, HDFC Top 200 and HDFC Prudence. I would like to invest Rs 5,000 each in a multi cap and mid and small cap fund. Considering my existing SIPs, which funds do you suggest? Also is my approach and fund selection right to increase my investment by 10 per cent each year?
You have chosen funds that are highly rated with a proven track record and performance history and continue investing in them. You can invest in HDFC Equity or Reliance Equity Opportunities for a multi cap fund and IDFC Premier Equty or HDFC Mid-Cap Opportunities for a mid- and small-cap fund. Currently you are invest Rs 15,000 through SIPs which you plan to increase to Rs 25,000 and increase it by 10 per cent each year, which will enable you to achieve your financial goal faster. Rs 25,000 invested every year for 20 years will accumulate Rs 2.49 crore if it earns an annualised 12 per cent or Rs 3.78 crore if it earns 15 per cent returns. All you need to do is invest regularly and track the performance of your funds regularly to make sure the investments are progressing in the right manner.