Is my current mutual fund SIPs enough to meet my various goals

Good to hear that you are investing in mutual fund SIPs with an objective to meet your various goals.

You are already investing Rs 25,000 per month for last 3 years and want to continue the SIPs for another 9 years. i.e. till your retirement.

Let us now see how much you need to save every month for reaching each of your goals?

Son's higher education goal – Your requirement is Rs 20 Lakhs after 5 years from now to meet this goal. You need to invest Rs 12,100 per month assuming annual return of 12% and also that you are already investing for the last 3 years.

Marriage goal of your son – You requirement is Rs 30 Lakhs after 8 years from now to meet this goal. You need to invest only Rs 11,000 per month assuming annual return of 12% and also that you are already investing for the last 3 years.

Your retirement goal – You need Rs 1 Crores after 9 years from now to meet this goal. You need to invest Rs 30,800 per month assuming annual return of 12%. We have assumed the investment period of 12 years.

As you can see from the above examples that your current SIP of Rs 25,000 is not sufficient to meet all the three goals. In fact, even if you keep investing Rs 25,000 per month only for your retirement goal, that will help you accumulate only Rs 81 Lakhs (assuming 12% annual return and total investment period of 12 years).

Therefore, you need to increase your monthly savings aggressively or allocate separate funds for meeting all the goals fully.

We have some suggestion on your fund selection as well.

– HDFC Top 200 Fund is not performing as good as its top performing peers in the large cap category. You might consider investing in SBI Bluechip Fund, Birla Sun Life Frontline Equity Fund or Kotak Select Focus in lieu of HDFC Top 200 Fund.

– You can invest in another midcap fund from SBI Mutual Fund stable. SBI Magnum Midcap Fund is a better performer compared to SBI Emerging Businesses Fund.

– Likewise, you can invest in Reliance Top 200 Fund in place of Reliance Growth Fund for getting better returns.

As you can see, you only have 9 years to meet your goals and the first goal is just after 5 years from now. You need to increase your SIPs aggressively and / or allocate more investments / or mark old investments, towards meeting all your financial goals.

Hope the above suggestion are useful to you. Thanks for writing to Advisorkhoj.