Have I selected the right funds based on my risk profile

I am 37 years old and would like to invest for next 10 yr through SIP of 30-36K to achieve 1 Crore goal. Following are my fund selection after reviewing & analysis and can take average to moderate risk (60 Equity and 40 Debt). Request for your inputs on portfolio. Birla Sun Life Dynamic Bond Fund 1,000, Birla Sun Life MIP II Wealth 25 10,000, Franklin MIP 4,000, Birla Sun Life Relief 96 3,000, DSP BlackRock Tax Saver ELSS 2,000, Birla Sun Life Top 100 fund 3,000 Birla Sun Life Pure Value 7,500, Franklin Small Companies 7,500?

Mar 27, 2017 by Lalit Soni, Mumbai | Mutual Fund

You have almost selected the right funds based on your risk profile excepting that mid cap and small cap funds may not be the right fit for you as your risk profile is moderate.

Mid and small cap funds are best suited for high risk takers. Therefore, if you cannot take high risk, you might replace these funds with large cap equity funds. Choosing large cap scheme/s such as SBI Bluechip, Birla Sun Life Frontline Equity, ICICI Prudential Focused Bluechip and Franklin India Bluechip may be a prudent choice for you.

You have mentioned investing Rs 30-36,000 per month through SIP to build a corpus of One Crore in 10 years. We think, you will have to increase the monthly SIP amount a bit as you can achieve a corpus of only Rs. 86.17 Lakhs assuming overall portfolio return of 12.50% from a monthly SIP investment of Rs 36,000 over 10 years.

Hope the above helps! Thanks for writing to us.

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