A mutual fund portfolio for a 'high-risk, high-return’ investor

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I am a 28-year-old salaried employee. My risk profile is high-risk, high-return. My SIP portfolio is below:
Aditya Birla Sun Life Small Cap Fund: Rs 2,000
Aditya Birla Sun Life Banking & Financial Services Fund: Rs 3,000
Aditya Birla Sun Life Tax Relief 96: Rs 3,000
DSP Tax Saver Fund: Rs 3,000
L&T Emerging Businesses Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000

My goal is to build enough corpus for home, retirement, car, and children’s marriage and education. Could you please review my portfolio and let me know in case of any changes required? I appreciate your help and support.
-Aritra


If you take high risk, it is not necessary that you will always get high returns. There would be periods of large losses and extreme volatility. That is why you should always look at your risk-taking ability and risk appetite in life. If you have your finances and insurance covers in place, you have the ability to take risk. However, if you have huge liabilities and your finances are not in order, you do not have the risk-taking ability. Also, what is your mental make up? Can you live with a lot of volatility and huge swings in returns? If yes, you have a large risk appetite or aggressive risk profile. If you prefer steady returns and you can't handle volatility, you may be conservative or moderate risk-taker. You should always choose your mutual funds based on your risk profile.

  • 4.38%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.8 YearsTime taken to double money
  • -6.2%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.8 YearsTime taken to double money
You have listed several financial goals, both medium and long-term goals. However, you will have to adopt a goal-based investing to achieve these goals. First, find out the current cost to achieve them. Next, account for annual inflation to find out the target corpus needed to achieve those goals. Once you know the realistic target, you can find out how much you need to invest every month. For more, read: DIY Mutual Fund Tools: SIP Calculator in excel
DIY Mutual Fund Tools: SIP Calculator in excel
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Well, investing via SIPs is not restricted only to equity mutual funds, you can invest through SIP in debt funds and direct stocks as well. You can use your SIP in debt funds to take care of your short to medium goals, and SIP in equity schemes to take care of your long-term goals. You can get in touch with your advisor or use some online calculators to find out about the likely corpus or required investment, but we will tell you how to create your calculator with MS Excel

Well, investing via SIPs is not restricted only to equity mutual funds, you can invest through SIP in debt funds and direct stocks as well. You can use your SIP in debt funds to take care of your s..
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Start with calculating your target corpus. Don’t use a nice big number like Rs 1 crore to take care of your retirement or child’s study abroad. Work with real numbers (current cost of living or college fee), provide for annual inflation (be careful about lifestyle inflation and education inflation) and taxes to calculate your target corpus. Read: Will Rs 1 crore be enough to take care of all your needs after 15 years?

Start with calculating your target corpus. Don’t use a nice big number like Rs 1 crore to take care of your retirement or child’s study abroad. Work with real numbers (current cost of living or colle..
Read More

Your DIY SIP calculator can help you find two things you are looking for: one, how much should you invest monthly to reach your target corpus. Two, how much will you be able to accumulate with your regular investment of a specific sum.

Your DIY SIP calculator can help you find two things you are looking for: one, how much should you invest monthly to reach your target corpus. Two, how much will you be able to accumulate with your r..
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We will start with the first calculation. Open MS Excel. Next, look for 'Insert fx' sign under the 'FORMULAS' tab in the menu bar. If you take your cursor to the `fx’ sign, it will show `Insert Function.’ Click on it, and box will open with various functions. Select `PMT’ function. Click on it, and another box with various columns will open. Key in the required numbers.

Rate: assumed rate of interest. Example, 12%. Divide it by 12 since you are investing every month.

Nper: Number of months. Example: 10 year; multiply it by 12 to make it months

PV: ignore this column if you are starting afresh and do not have any savings or investments for the goal at present

FV: key in your target corpus number

Type: key in '1' or '0' depending on if you are investing in the beginning or at the end of the period

There you go, you have the monthly investment required to be made. (Check the above image)

We will start with the first calculation. Open MS Excel. Next, look for 'Insert fx' sign under the 'FORMULAS' tab in the menu bar. If you take your cursor to the `fx’ sign, it will show `Insert Funct..
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Let us move to the next calculation: how much will you make with your regular monthly investments. Once again, go to 'fx' sign, click on it and choose `FV’ function from the list of functions.

Key in required number in Rate (same numbers as above), Nper (key in the number of years, multiply it by 12 to make it monthly), Pmt (key your SIP amount), PV(if you have any existing investments and you want the calculator to factor in that towards your goal) , and enter '0' or '1' in `Type’ column. There you are, the result is your corpus at the end of your investments. (Check the above image)

Let us move to the next calculation: how much will you make with your regular monthly investments. Once again, go to 'fx' sign, click on it and choose `FV’ function from the list of functions.Key in ..
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You are currently investing in two tax saving schemes, two small cap schemes, thematic scheme, and large & mid cap scheme. You have chosen good performers, but ensure they are in line with your risk profile.
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