Have I selected the right funds for my retirement

First of all a thank you for creating such an awesome site with active interactions. I have been going through various queries posted on you website along with the informative articles with all the basics of investment are clarified and have a learned a lot in last 2 days even though I just started investing in mutual funds for 20 Years. I am currently 31 and looking for my retirement at the age of 50. Currently I am investing 30,000 per month on 3 different funds, below mentioned are the funds 1) Birla Sun Life Frontline Equity Fund - INR 10000 - 15 Years, 2) HDFC Mid-Cap Opportunities Fund - INR 10000 - 15 Years, 3) ICICI Prudential Value Discovery Fund - INR 10000 - 16 Years. Kindly look into this funds and suggest me if this are going to be good for long term. Also the payment dates for deduction has been distributed into different dates so that I have different dates for purchasing of this funds. Also I wanted to invest additional of 20,000, but as you should be aware that DSP BR Micro Cap Fund has stopped taking new investment. Kindly suggest me some good funds that can be backed up for my long term goals for 20 years. I am an NRI user so there no much headache about tax benefits and other such complications. Awaiting for your quick and prompt response?

Apr 13, 2017 by Robin, Kuwait | Mutual Fund

At the outset, we thank you for the kind words about our website. Glad that you find it informative and learned something from here.

The funds you have chosen are amongst top performing in their respective categories and a good fit for your long term investing needs. However, we are assuming your risk profile is high given the funds you have chosen.

You want to retire at age 50 but not mentioned the corpus you want to have at your retirement. This is important in order to invest the appropriate amounts for this goal.

The expected corpus from your current SIPs of Rs 30,000 per month for 15 years could be Rs 1.60 Crores assuming 12.5% annual returns. If we assume the rates are 14% and 15% then the corpus would be around Rs 1.83 Crores and 2.03 Crores respectively.

Yes, DSPBR Micro cap is not accepting fresh investments as of now. In lieu of that you can invest in Mirae Asset Emerging Bluechip Fund and Reliance Small Cap Fund. Though mid & small cap funds carry the highest risk they have delivered the highest returns too! In the last 5 years mid & small cap fund category has given average annual return of over 21% whereas the top funds have given between 25-30% annual returns.

Hope the above fully answers your query. Thanks for writing to Advisorkhoj

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