Meeting your portfolio goals

By Morningstar |  30-10-18 | 

The Morningstar Investment Management team provides some guidelines, but recommends that all individuals consult their investment/tax adviser before making any investment decision.

Horizon: 15 years. Targeted corpus: Rs 2 crore. EPF contributions = Rs 11,000 per month (Employer + Employee). Began investing in April 2018. SIPs of Rs 6,000 each in:

  • Aditya Birla Sun Life Pure Value
  • HDFC Capital Builder Value
  • L&T Midcap Invesco Contra
  • MOSL Multicap 35
  • ICICI Bluechip


Based on your current equity/debt split of 77:23% and monthly contribution of Rs 47,000 for 15 years, you would be able to attain a corpus of approximately Rs 2.01 crore at the end of 15 years assuming a weighted average rate of return of 10.7%.

However, if you are planning for a retirement corpus, you would need to evaluate whether Rs 2 crores would be sufficient to meet your retirement needs. If not, then you may need to consider incrementally increasing your annual contribution amount and / or extend your investment horizon.

I want to go for a home loan of Rs 35 lakhs. I received Rs 35 lakhs from my company as PF. I want to invest that in mutual funds and pay EMIs. Kindly advise the type of funds to invest in. Do I need to opt for SWP or dividend funds?


Since you wish to generate regular income from mutual fund portfolio to pay monthly home loan EMI, you can consider investing in equity and debt mutual funds. The split would be determined based on your risk profile, if you are a conservative investor then around 80% can be allocated to fixed income funds and rest to equity mutual funds.

Systematic Withdrawal Plan (SWP) facility would allow you to withdraw a fixed amount every month or quarter from the fund. The amount chosen gets directly credited in your bank account on a fixed specified date. This post will help you understand SWP.

I would like to invest Rs 1 lakh/month in SIP for the next 10 months to create an investment amount of Rs 10 lakhs and to hold these funds for the next 10 years for my kids’ higher education. I can't go for an STP as I don't have the lump sum amount right now, but over the next 1 year I probably can move 1 lakh per month for this investment. I am planning start 4 SIP's each with Rs 25,000. One each from mid-cap, multi-cap, small-cap and aggressive hybrid fund. Kindly advise if this investment planning strategy is good.


We would recommend staggering investment over 18-24 months rather than 10 months, given your investment horizon is 10 years. The split would be determined based on your risk profile, if you are an aggressive investor then around 80% can be allocated to equity funds and rest to debt mutual funds. Allocation to large cap funds could be around 40%-50%. Closer to your investment goal, you can consider reducing allocation from equity to reduce volatility in portfolio value.

To evaluate mutual funds across categories, one can look at Morningstar’s ratings for funds – this tool should help.

Post your query by accessing the Ask Morningstar tab. Our team will endeavor to answer queries ONLY related to mutual funds and portfolio planning from our registered readers.

Add a Comment
Please login or register to post a comment.
Manohar Lal
Mar 7 2019 05:17 AM
 I am 32 years old. Have a 10-year horizon. These are my SIPs. please advice...

1) HDFC Mid-Cap Opportunities Fund(G): 8000/
2) Kotak Standard Multicap Fund(G): 8000
3) Mirae Asset India Equity Fund-Reg(G) : 9000
4) SBI BlueChip Fund-Reg(G): 10000
Kuldeep Jain
Jan 13 2019 07:21 AM
I am planning to construct house in the next 10 years which going to cost me around 60+ Lakhs. I want to make MF + Equity portfolio of 5 Lakhs lump sum and SIP of 10K monthly for Next 10 years. I have an aggressive risk appetite but wife is play safe woman. Currently, I am blocking all amounts in Bank FD’s.
Could you guide us in suggesting MF or Equity for portfolio distribution which can help me to achieve mine targets?
Naveen VP
Dec 12 2018 01:09 PM
 Please suggest me for the coupous of 20 C after 25 years.
Kaushik Vadodariya
Nov 29 2018 10:53 PM
Mutual Fund Tools