Is my Mutual Fund SIPs enough to meet my long term goals

I have SIP in the following funds since 10 months: 1) DSP BlackRock Micro Cap Fund - Rs. 10000, 2) Franklin India Smaller Companies Fund - Rs. 5000, 3) Reliance Small Cap Fund - Rs. 5000, 4) Franklin India Prima Fund - Rs. 5000, 5) Mirae Asset Emerging Bluechip Fund - Rs. 5000, 6) DSP BlackRock Opportunities Fund - Rs. 5000, 7) DSP BlackRock Tax Saver Fund - Rs. 5000, 8) Kotak Select Focus Fund - Rs. 10000, 9) Birla Sun Life Frontline Equity Fund - Rs. 5000, Total SIP - Rs. 55000. Lump sum investment in the following funds since 8 months - 1) DSP BlackRock Micro Cap Fund - Rs. 50,000, 2) Franklin India Smaller Companies Fund - Rs. 25000, 3) Kotak Select Focus Fund - Rs. 50000, 4) DSP BlackRock Tax Saver Fund - Rs. 25000, 5) ICICI Value Discovery Fund - Rs. 80000, 6) Reliance Tax Saver (ELSS) Fund - Rs. 19000, Total - Rs. 2,49,000. I am 29 years, married. I want to invest for more than 15 years & I am investing in SIP since 8 months. I am willing to take risk for better returns. I have no children. My aim is - 1) Retirement at 60 years - Rs. 10 Crores, 2) Children Education after 20 years - 80 Lacs, 3) Children's marriage after 25 years - 2 Crore. Are the above SIP's enough for my aims or should I increase SIP? I am considering to replace Birla Sun Life Frontline Equity Fund with Mirae Asset India Opportunities Fund. Also should I make any changes in the above funds?

Jul 2, 2017 by Rohit Jain, Mumbai | Mutual Fund

Great to note that you are planning for your long term financial goals at the right age!

Coming back to your query, we will not suggest any modifications in the schemes selected by you (for lump sum as well as SIPs) as these are among the best performing in their respective categories.

The selection is also befitting to your risk profile which is 'high risk'.

You have three goals which are as follows and let us see if you can meet them with your current investments.

1. Child higher education goal - You need Rs 80 Lakhs after 20 years. You need to save Rs 8,300 per month for next 20 years to meet this goal (assumed rate of return @12%). Please check this https://www.advisorkhoj.com/tools-and-calculators...

2. Child Marriage goal - You need Rs 2 Crores after 25 years. You need to save Rs 11,200 per month for next 25 years to meet this goal (assumed rate of return @12%). https://www.advisorkhoj.com/tools-and-calculators...

3. Your retirement goal - You need Rs 10 Crores after 31 years. You need to save Rs 27,500 per month for next 31 years to meet this goal (assumed rate of return @12%). https://www.advisorkhoj.com/tools-and-calculators...

Your monthly SIP total is Rs 55,000 and to meet the above three goals, you need to save only Rs 47,000 per month. Therefore, your current investments are sufficient enough to meet your future goals.

However, there is a word of caution - Have you accounted inflation while deciding the goal amounts? This is extremely important and the most vital component to be considered while planning your long term goals. Think about the current cost of these goals, add annual inflation to it (if you have added already) and check if the goal amounts remain same or changes.

You may use these two calculators to know the inflation adjusted goal amounts -

https://www.advisorkhoj.com/tools-and-calculators...

Hope you find the above helpful. Wishing you long term investing success!

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