Ask ET Mutual Funds: Will I be able to create a retirement corpus of Rs 10 crore?

I am currently investing Rs 55,000 per month via SIP mode. Allocation is Rs 5,000 – Birla Sun Life Pure Value Fund, Rs 5,000 – DSP BlackRock Top 100 Equity Fund, Rs 5,000 - Franklin India Bluechip Fund, Rs 5,000 - Franklin India Prima Plus Fund, Rs 5,000- HDFC Balanced Fund, Rs 5,000 - ICICI Prudential Focused Bluechip Equity Fund, Rs 5,000 - ICICI Prudential Value Discovery Fund, Rs 5,000 - Reliance Equity Opportunities Fund, Rs 5,000 - UTI Equity Fund, Rs 5000 - UTI Mid Cap Fund, Rs 5,000 - HDFC Childrens Gift Fund (Investment plan). All are growth funds and I am investing for my retirement corpus. My age is 39 years and I have been investing since last 5 years. Please suggest if any portfolio changes are required. I am looking for retirement corpus of around Rs 10 crore through MFs. In addition, my current PF balance is around Rs 32 lakh.
--Pranjal Ray

Rishabh Parakh, Chief Gardener, Money Plant Consultancy, responds:

You have a diversified portfolio but it consists of too many funds. Yes, you need to restructure your portfolio to have more of midcap and some smallcap allocation looking at your requirement of building a retirement corpus. You have not mentioned the year you would like to retire. Considering your current age (39 years), I assume you would work for another 10 to 15 years. Assuming that you will continue your current SIP of Rs. 55,000 for the next 15 years, you would be able to generate another Rs 3.50 crore at the rate of 15 per cent annualised returns (assumed) plus your existing PF and current MF corpus will also add up to the same. You need to analyse and do a proper financial planning to achieve the target of Rs 10 crore. You can come out of DSP BlackRock Top 100 Equity Fund, Reliance Equity Opportunities, HDFC Children's Gift Fund, UTI Equity because most of these are old funds and not enough inflows are coming to these funds than other better performing funds which is a key behind future growth of any fund. You can add few midcap/multicap oriented funds like Mirae Asset Emerging Bluechip Fund, Franklin India High Growth Companies Fund or Franklin Build India Fund, Kotak Select Focus Fund, SBI Magnum Multicap Fund, L&T Emerging Businesses Fund and Birla Sun Life Equity Fund. Also, you can achieve your target by stepping up your SIP amount per month.

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