Can I reach my various goals through my current SIP investments

I have started SIP (Rs. 41000 per month) for following mutual funds (monthly SIPs are indicated below) with targeted amount of (i) Rs. 50 lacs required for my daughter’s higher education after 13 years (in the year 2030) from today, (ii) Rs. 75 lacs required for my daughter marriage after 20 years from today and (iii) Rs. 3.0 crores required after 22 years as retirement corpus. My current investment in equity mutual funds is about Rs. 8.5 lacs: Fund Name - SIP (Rs.) Birla Sun Life Front Line Equity Fund 5000, Kotak Select Focused 5000, Motilal Most Focused 35 5000, ICICI Pru Value Discovery 5000, L&T India Value 4000, Mirae Asset Emerging Bluechip 4000, Motilal Most Focused Mid 30 4000, Sundaram Select Mid 4000, DSP BlackRock Micro Fund 5000. I have decided to continue SIP of above amount (41000 or above per month) for a period of about 20 to 22 years. However, during the requirement of money on higher education of my daughter I wish to redeem required amount (i.e. Rs. 50 lakhs after 13 years) from my investment though I desire to continue same SIP upto 20 to 22 years. You are requested to review my portfolio and suggest necessary correction, if any. Further, you are requested to make a road map so that I can achieve my goals please?

Jul 8, 2017 by A Biswas, Nashik  |   Mutual Fund

You have defined your 3 goals very correctly and following is the solution –

Higher education goal of your daughter – You requirement is Rs 50 Lakhs after 13 years to meet this goal. You need to invest on Rs 13,300 per month assuming annual return of 12%

Marriage goal of your daughter – You requirement is Rs 75 Lakhs after 20 years to meet this goal. You need to invest only Rs 7,800 per month assuming annual return of 12%

Your retirement goal – You requirement is Rs 3 Crores after 22 years to meet this goal. You need to invest only Rs 24,200 per month assuming annual return of 12%

Your current monthly SIP investment of Rs 41,000 is enough to meet all the above 3 goals. Yes, you can draw the amounts, Rs 50 Lakhs and Rs 75 Lakhs after 13 and 20 years respectively from the accumulated amounts to meet the two goals – higher education of your daughter and her marriage.

You have also selected good funds from large cap, mid cap and diversified equity fund categories. The portfolio is quite aggressive and ideal for long term investment needs of a moderately high to high risk taking investor. As planned, you should continue with your investments for the long term while reviewing the portfolio performances at least once every year. No changes in the portfolio is suggested as of now.

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