Can I achieve my long term goals through existing MF investments

Axis Long Term Equity-G invetsted amount is: 91100, Franklin India Smaller Companies Direct-G invested amount is: 22811, Franklin India Smaller Companies-G invested amount is: 24201, Franklin India Taxshield-G invested amount is 47,500 ICICI Pru Value Discovery-G invested amount 23,101 ICICI Pru Value Discovery Direct-G invested amount: 1100, Mirae Asset Emerging Bluechip Reg-G invested amount: 4200, Reliance Tax Saver (ELSS)-G invested amount: 30000, Tata Balanced Direct-G invested amount: 29000, Birla SL Frontline Equity Direct-G invested amount 600 my total investment value is 3.2 lac. I want to move all Growth frunds to Direct growth funds is it a good idea? and I want to do 15500 SIP monthly on the above funds and want to increase 10% for every 6 monhts. Birla SL Frontline Equity Fund(G) - 01/04/2017 Rs. 14100.00, Franklin India Smaller Cos Fund(G) - 05/04/2017 Rs. 19000.00, Tata Balanced Fund(G) - 09/03/2017 RS. 2300.00, ICICI Pru Value Discovery Fund(G) - 12/03/2017 Rs. 1500.00, Mirae Asset Emerging Bluechip-Reg(G) - 15/03/2017 2100.00, Franklin India Smaller Cos Fund(G) - 19/03/2017 Rs. 1900.00, Birla SL Frontline Equity Fund(G) - 16/04/2017 Rs. 1100.00, ICICI Pru Value Discovery Fund(G) - 24/03/2017 Rs. 1500.00, Mirae Asset Emerging Bluechip-Reg(G) - 28/03/2017 Rs. 2100.00 in addition to top SIP will invest 35k each in axis direct, Reliance Direct ELSS Funds yearly for next 13 years will this plan work to get the below my goals 6 lacs car in 2010, 1 cr home in 2030, 3 cr retirement corpus in 2030, how much returns I need to get to ac chive my goals and any fund changes needed. I'm an aggressive investor for next 10 years. i have 3 years of mutual fund experience?

Apr 24, 2017 by Vamsi Krishna Reddy, Hyderabad | Mutual Fund

You have selected good funds for your lump sum and SIP investments.

If you can select funds on your own and can manage all your mutual fund investments yourself, then of course you can move to direct plans.

The year in which you want to buy a car is not clear as you have mentioned the year as 2010.

A. With regards to your long term goals - your home and retirement - you need a total corpus of Rs 4 Crores after 13 years. With your current mutual fund investments of only Rs 3.20 Lakhs, you need to save Rs 98,000 per month for 13 years, assuming annual returns @ 12.50%.

B. You plan to reach this goal by investing only Rs. 15,500 per month through SIPs and increase it by 10% annually. With this you will be able to create a corpus of only Rs 87 Lakhs, assuming annual return @12.50%.

C. You also want to invest Rs 70,000 per year in ELSS. For the sake of simplicity, we are assuming you are investing Rs 6,000 through monthly SIPs in ELSS Funds. With this you can create another corpus of Rs 24 Lakhs, assuming annual 12.5% returns.

D. Your current mutual fund investment of Rs 3.20 Lakhs can get you another corpus of Rs 15 Lakhs after 13 years, assuming annual 12.5% returns.

E. Therefore, you will still have a shortfall of Rs 2.74 Crores from the targeted corpus of Rs 4 Crores. (Rs 4 Crores - Rs 87 Lakhs - Rs 24 Lakhs - Rs 15 Lakhs).

F. The above is a huge deficit and you only have 13 years to catch up! If you can invest additional Rs 70,000 per month through monthly SIPs, then this target can be achieved (assuming 12.50% annual returns) else you will have to compromise on your goals.

You need to think through your investment objectives and set realistic goals in order to achieve them. Allocating more funds through monthly saving in equities may bridge the gap upto some extent. You should take expert advise on this.

Thanks for writing to Advisorkhoj

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