I want to build corpus of Rs 1.5 crore in the next 13 years. Am I on right track?

Since July 2017, I have been investing Rs 3,000 each in ABSL Tax Relief'96, Motilal Oswal Long Term Equity, ABSL Frontline Equity, Mirae Asset India Equity, Kotak Standard Multicap and Motilal Oswal Multicap 35, and `4,000 each in HDFC Hybrid Equity and L&T Midcap. I am 45 years old and want to build a corpus of Rs 1.5 crore in the next 13 years. Please review my portfolio.

Naveen Kukreja CEO and Co-founder, Paisabazaar.com replies, "The value of your current mutual fund investment is Rs 4.82 lakh. Assuming annualised return of 11%, this will grow to about Rs 19.75 lakh in 13 years. Your monthly SIPs of Rs 26,000 over the next 13 years will add another Rs 89.50 lakh to the corpus, taking it to Rs 1.09 crore. To make up the shortfall of Rs 41 lakh, you need to further invest Rs 12,000 per month over the next 13 years. Your incremental investments can be distributed equally between any two of the following funds: Axis Focused 25, ICICI Pru Bluechip, Franklin India Smaller Companies, L&T Emerging Businesses and ICICI Pru Value Discovery. Opt for direct plans of the scheme you select as their expense ratios are lower compared to regular plans. Your existing portfolio comprises schemes with decent track records. Make sure that you periodically review the performance of your funds."

I want to invest Rs 10,000 per month in mutual funds for the next 10 years in my granddaughter’s name. Please suggest schemes.


C.R. Chandrasekar CEO and Co-Founder, FundsIndia.com replies, "Given that you wish to invest for your granddaughter’s future, you can have an equity-oriented portfolio. Consider investing Rs 5,000 in Mirae Asset India Equity, Rs 2,000 in Franklin India Prima and Rs 3,000 in HDFC Corporate Bond fund. This will give you a 70:30 equity-debt portfolio. Review the funds annually and make sure you keep the SIPs going irrespective of market ups and downs."