I recently started investing in five different monthly SIPs. Rs 6,000 in ICICI Prudential Focused Bluechip Equity Retial, Rs 5,000 in Fidelity Equity, ICICI Prudential Dynamic and HDFC Prudence, Rs 3,000 in Birla Sun Life Frontline Equity and Rs 2,000 in Reliance Gold Savings. Is this a good portfolio to build Rs 20 lakh in 5 years?
— Kumaran
The funds you have selected are good picks in each of their categories. But collectively, there is a huge tilt towards funds that fall in the ‘Equity: Large & Mid Cap’ category.
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If your monthly investment of Rs 26,000 earns an annualised 12 per cent return; you will accumulate Rs 21.44 lakh in five years. In the same time span, if it earns an annualised 15 per cent return; you can expect to build a corpus of Rs 23.33 lakh. As you approach your target date, start shifting more money towards the hybrid fund.
This article was originally published on March 03, 2012.
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