I have been investing in the mutual funds listed below through SIP every month. I am planning to invest for 10 years for my kids’ education and my retirement. I can take moderate risk. Please tell me whether my investments are fine for the long term?
SBI Blue Chip Fund: Rs 5,000,
SBI Magnum Multicap Fund: Rs 3,000,
ICICI Balanced Advantage Fund: Rs 2,000
Mirae Asset Emerging Bluechip Fund: Rs 2,000,
Nippon India Large cap Fund: Rs 2,000,
Kotak Standard Multicap Fund: Rs 3,000,
L&T Equity Savings Fund: Rs 1,000,
L&T Hybrid Equity Fund: Rs 1,000,
L&T Balanced Advantage Fund: Rs 1,000
I am 36 years old and my kid is 8 years old.
One, it would be great if you can put a number to your two goals. For example, you need Rs 10 lakh for the higher education of your child. Assuming an annual inflation of 6%, you would need Rs 17.91 lakh to achieve the goal after 10 years. To create Rs 17.91 lakh after 10 years, you need to invest Rs 7,785 every month. Do not choose random numbers. Choose a course fee at the college or living expense, etc and realistic inflation rate to arrive at a target corpus.
Two, your mutual fund portfolio lacks focus. A moderate investor should ideally invest mostly in multi cap schemes to meet his long-term goals. If he want to diversify and reduce the overall risk in the portfolio, he can also take a small exposure to large cap mutual funds.
Reassess your risk profile and ensure that your portfolio is in line with your risk profile for optimal returns.