I have made the investments for long term will they be able to achieve my goals

You have made the right start by investing in mutual funds through SIPs for your longer term financial goals. Over a long investment horizon an investor can expect 15 – 20% returns from equities, based on historical returns. Based on the information provided by you, you have SIPs of Rs 25,000 per month in equity mutual funds. Even if your equity funds give a return of 15% in the long run, you can meet your financial goals from your equity investments. If you get 20% returns over the next thirty years, your retirement corpus will be two times more than what you are targeting. All the funds selected by you are among the best equity mutual funds. While HDFC Equity Fund has been underperforming relative to its top performing peers, the long term track record of the fund is very impressive. Therefore, one can expect a turnaround in performance once the economy recovers sufficiently.

Have you factored in inflation in your goal setting? Remember, at an inflation rate of 4% an expense of Rs 1000 will be more than Rs 3000, 30 years later. However, since you are planning to do an SIP top up of 20% every year, you should be able to beat inflation as well. From a financial planning viewpoint, asset allocation is also an extremely important factor in meeting financial goals. Asset allocation refers to investment allocations to debt, equity, gold and other asset classes. At your age, equity is the best asset class and your maximum investment allocation should be to equity funds. However, over a period of time, you should gradually shift your asset allocation to have higher allocations to debt. You can gradually shift your investments to balanced funds and then to debt oriented funds. This will balance the risk of your portfolio and protect it from equity volatility when you are near your retirement. You should note that, fixed income or debt returns are lower than equities. However, since you plan to increase your SIP by 20% every year, you will be well prepared for lower portfolio returns in the future and still be able to meet your financial goals.

It is not clear what you mean by, savings bank investment of Rs 25,000 per month. You should have a sufficient balance in your savings bank account to meet any emergency expense. Good financial planning practices require investors to also setup a contingency fund. Some thumb rules suggest that you should have a contingency fund equal to six months of your monthly expense, in the event of loss of income or any other adverse financial situation. However, instead of keeping the contingency fund in the savings bank account, you should keep it invested in a liquid fund. Liquid funds are now giving 7 – 8% returns, while your savings bank account will pay an interest of only 4%. Liquid funds do not have exit loads and redemptions are credited to your bank account on the next business day after receiving the redemption instruction. If you are investing in bank recurring deposits, you can also consider debt mutual funds, especially if you have a slightly longer investment horizon of more than 3 years. While bank recurring deposit interest is taxed as per your income tax rate, debt mutual fund returns held for over 3 years are taxed at 20% after allowing for indexation benefits. Indexation benefit will reduce your tax obligation considerably. Also, long term debt fund returns can beat bank fixed deposit interest rates even on a pre tax basis, if the Reserve Bank of India continues its accommodative stance over the next few years.

As far as health insurance is concerned, you should ensure that you have enough Mediclaim cover to meet any emergency medical needs. If both you and your spouse is healthy with no known history of medical conditions on either side of the family, then your Mediclaim cover should be sufficient. However, if you plan to have children in the near future, then you should ensure that you have maternity cover in your health insurance or Mediclaim plan. Also, you should review your health insurance needs from time to time and buy additional insurance, based on the healthcare needs of your family. Same goes for life insurance. You should review your life insurance needs from time to time, based on your income and lifestyle changes, and buy additional term insurance plans, if required.