SIPs to help you reach your goal

By Morningstar |  10-05-19 | 
 

Morningstar recommends that readers consult their financial advisers. Below are just broad guidelines. You can view our fund analyst reports here and check performance of funds here.

I am 23 years old. Investible surplus of Rs 20,000 a month. Moderately high-risk profile. Goals - Rs 20 lakhs in 5 years. Want to retire by age 50. Existing monthly expenses Rs 50,000. Life Insurance cover of Rs 2 crores. Suggest mutual funds and allocation.

- Karan

Goal: Rs 20 lakhs

  • Equity Categories: Large Cap, Multi Cap
  • Debt Categories: Short Duration Funds, Corporate Bond Funds
  • Suggested Allocation: 70% in debt, 30% in equity
  • Increase in SIP amount every year by: 10%
  • Starting Monthly SIP amount: Rs 25,000
  • Period: 5 years
Goal: Retirement
  • Period: 27 years
  • Suggested Allocation: 20% in debt, 80% in equity
  • Debt Categories: Short Duration Funds, Corporate Bond Funds
  • Equity Categories: Large Cap (20%), Multi Cap Equity (45%), Mid Cap (25%), Small Cap (10%).

My SIPs of Rs 1,000/month: L&T Mid Cap, DSP Mid Cap, SBI Magnum Mid Cap, ABSL Frontline Equity, Franklin India Prima, HDFC Mid Cap Opportunities, Franklin India Focused Equity, L&T India Value, SBI Bluechip, Kotak Bluechip (SIP Rs 5,000), Kotak Standard Multicap,  Franklin India Equity Savings Fund (Lumpsum of Rs 1 lakh).

- Nitin Navare

The overall portfolio allocation seems to be in order. If you do have a 10+ year investment horizon and can take on some additional risk, you could replace one of your mid-cap funds with a small-cap fund.

My goal is Rs 40,000 per month after 10 years. I am now 45 years old. HDFC Mid Cap Opportunities (SIP Rs 5,000), HDFC Retirement Savings Fund -- Equity (SIP Rs 10,000), Mirae Asset Emerging Blue Chip (SIP Rs 5,000), ABSL Equity (SIP Rs 50,000).

- Ashok

The funds you are invested in are fine.

Add some fixed income exposure. Since you are looking to retire in 10 years, we recommend the following allocation:

  • Equity: 70%
  • Debt: 30% (Short Duration Funds, Corporate Bond Funds)

ABSL Equity Fund has an exposure of 71.4% in your portfolio. Reduce concentration exposure to a single fund to 15-20% of overall portfolio.

You could look at adding a large-cap and a multi-cap fund.

If you invest Rs 70,000/month through SIPs in the suggested allocation for the next 10 years, you should have built a large enough corpus that can be invested into a conservative portfolio that will yield you Rs 40,000/month.

My investment horizon is 12 years. What is your view of these funds? Reliance Pharma (Rs 500), Reliance Small Cap (Rs 1,500), Reliance Equity Hybrid (Rs 1,500), Mirae Asset Emerging Bluechip (Rs 2,000), SBI Consumption Opportunities (Rs 750).

- Manohar

You have a 20% allocation towards sectoral/thematic funds (Pharma and Consumption). We recommend having not more than a 10% exposure to sectoral/thematic funds.

Your portfolio has no large-cap fund and no multi-cap fund. We recommend adding 2-3 Large Cap/Multi Cap funds to the portfolio which should constitute 50% of the overall portfolio.

I want Rs 1 crore in 12 years. MY SIPs are: Franklin Smaller Companies (Rs 5,000), HDFC Midcap Opportunities (Rs 5,000), HDFC Small Cap (Rs 2,000), L&T India Value (Rs 5,000), ABSL Pure Value (Rs 2,000), Mirae Asset Large & Midcap (Rs 2,000).

- MGD

The portfolio has a significantly large allocation towards mid & small cap stocks. We recommend reducing this exposure and adding exposure towards large-cap & multi-cap funds to the extent of 50% of the portfolio.

Increase SIP amounts by 15% each year to comfortably hit the Rs 1 crore goal in 12 years.

Since 2011, my SIPs are: HDFC Top 100 (Rs 2,500), IDFC Premier Equity (Rs 2,500),  DSP Top 100 (Rs 2,000), Franklin India Bluechip (Rs 2,000), Franklin US Opportunity (Rs 1,000), Franklin Life Stage 40 (Rs 2,000), ICICI Focused Bluechip (Rs 1,000), ICICI Value Discovery (Rs 1,500), Axis Long Term Equity (Rs 2,000), Sundaram Midcap (Rs 2,000), Quantum Long Term Equity (Rs 2,000), Mirae Emerging Blue Chip (Rs 2,000),  LT Value Fund (Rs 1,000), UTI Mid Cap (Rs 1,000).

- Venkat

The funds you are invested in are broadly okay. We recommend exiting positions in DSP Top 100 as it has seen a fair bit of fund manager changes and the new manager Gopal Agarwal, while experienced, has only recently taken over the management of this fund. You could add that allocation to one of the existing large-cap funds as you do have a fairly large list of funds you are investing into.

I am doing an STP for 18 months of Rs 5 lakh. Time horizon of 5-7 years. Goal is to accumulate Rs 13 lakh. Then I want to switch to a hybrid fund to generate fixed income.

  • ICICI Bluechip: 20%
  • Parag Parikh Long Term: 20%
  • Motilal 35 Multicap: 25%
  • Mirae Asset Emerging Bluechip: 25%
  • Kotak Multicap: 10%

Give suggestion for Rs 15 lakh investment for retirement and a social project after 5-6 years with a Rs 10 lakh goal.

- Kyachinu

You will need to increase your investment amount to 6.5 lakhs through a STP to be able to achieve your goal of Rs 13 lakhs after 7 years.

Your current portfolio allocation is fair and you should continue with the allocations to your current funds.

For achieving a goal of Rs 10 lakh in 6 years, you will need to either make a lumsump investment of Rs 6 lakh or a monthly SIP of Rs 11,000.

The suggested allocation is 70% in equity and 30% in debt (Short Duration, Corporate Bond).

You could add SIPs to your existing funds, or look at our list of recommended funds.

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Sriram Balasubramanian
May 20 2019 01:32 AM
Dear,

My name is Sriram. I am 29 years old. Need 1.8 crore at the age of 50. New to SIP / Investment world. Pl advise.

Also, kindly guide on picking on good SIP's.

Thanks & Regards,
Sriram.B
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