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  • Category: Mutual Funds

    Looking for 50 lacs corpus in mutual fund for a period of 20 years


    Have a query about investment in mutual funds? Looking out for financial advice regarding a large corpus? Check out this page for advice and tips from experts.

    I am having ICICI Prudential Value Discovery fund, HDFC MIS Cap opportunities fund, DSP Black Rock Mid Cap Fund, L&T mid cap fund each 500 SIP every month. My goal was to arrange corpus fund for my daughter for her education or marriage. Currently my daughter is 2 years old. I am planning these investments for 15 to 20. Suggest any changes required in my folio to achieve 25 to 50 lacs in 15 to 20 years
  • #151823
    As the share market is in good shape and if the present Govt financial policies succeed it is expected that the market will go on a rising trend. Mutual Fund schemes invest their money in the equity shares and debt instruments only and once the share market goes up they follow it accordingly.

    Now what you have to see is the portfio of the MF schemes you are holding. Due to the portfolio selection and time to time swapping of portfolio some fund managers are able to make more returns then others. A common investor may not understand these subtleties.

    Check the portfolios of your schemes and see whether they are inclined to a particular category or a mixed lot. For exam if the major part of portfolio is financial companies and in future if financial sector does not come up to the expectations then the return will not be commensurate. Similarly the funds which have invested in pharma sector may have a tough time if pharma industry does not perform well.

    So what I will suggest is go for diversified funds both in equity and balanced category. Some of the funds selected by you are already performing well but as different sectors perform differently it is difficult to predict the future of a MF scheme with certainity.

    Thoughts exchanged is knowledge gained.

  • #151833
    An investment of merely Rs 5,000 in SIPs for a period of 20 years would give a future value of over Rs 57 lakh. This considering an expected rate of return at 13%. This is what generally people think. You are investing about Rs.2000/-. So on the same basis, you may end up with somewhere around 20 lacks. I feel you can start investing another Rs. 1000/- per month so that you can go up to 27 lakhs.
    Large-cap schemes like Bluechip Funds are ideal for conservative equity investors. It is advisable to go for minimum 10% of your income as savings.
    Generally, many of this finance companies will have some financial advisers we will advise the investors in a proper direction. If you have some known person in this field you can try to take his advise.

    drrao
    always confident

  • #151840
    Your present monthly total of SIP is Rs 2000 (500 x4). If the current SIP goes on for 20 years and the annual return is 15 % then you will be getting a maturity of 30 lakhs.

    It is not very unrealistic to expect that,though it may not be so steady always. You may now rework your targets and investment to arrive at an ideal and realistic target. Sometimes you may need a review and churn or change after a few years.

    A very realistic expectation may be 12 to 13% average annual return. Hence you may slightly review the performance history of the present invested funds and accordingly adjust a little more additional investments in some diverse portfolios too.

  • #151842
    The future of investment in share market or Mutual Funds depends on the economic development and industrial growth in the country. As on today we are in a developing regime. If the Govt policies are fruitful and we increase our share in the world trade, definitely these investments will yield good results. On the contrary, in adverse situation the gains will be very mediocre.

    Anyway, investment in mutual funds is a long time measure to build a fortune and one has to select equity oriented as well as mixed schemes (equity + fixed income or debt) to make a balance portfolio. Your funds are more and less to that tune only. As you are going for SIP you have added advantage of average purchase value also.

    Please make a note that today if you invest in Post Office schemes then also your corpus will be doubling in 10-12 years. Only thing is you may have to shell out a higher income tax as compared to your tax payout on long term equity capital gains. Still, you can consider a part of your investment in Post Office or other Govt schemes which are very safe.

    Regarding switching of investments from one scheme to other and adjustment of your portfolio requires the help of an experienced financial adviser who can look upon your investments from that angle and advise the remedial measures if so required.

    Knowledge is power.

  • #151870
    If you invest Rs 3000 per month on SIP(Systematic Investment Plan) then you can get 2 to 3 crore in 20 to 25 years without much risk. SIP can be invest in any kind of mutual fund like debt funds or equity balance. If you can wait for long time mean more than 5 years then you should invest in equity funds and if your reaching time is less than 5 year then you can select debt balance. There is nomination facility in SIP too. You can purcharse SIP online through visiting websites like kervi and CAMS,, etc. You can also apply through contacting SIP agent who help you to know how to fill to forms and documents required for that. You can also be purchased from PSU and private banks. You can simply generate SIP investment statements by only PAN number by one click. It has been sent to you by the company on the registered email. SIP also imparts nomination facility to the customer. One or more nomination can be done in this. There is full liquidity in SIP that mean one can close partially withdraw / full withdraw his amount as per need.

  • #151871
    I have gone through your portfolio. It appears that you are ready to take risks. You have started SIPS in various mid-cap and value funds. Further, some of the funds have almost similar investment mandate. On the other hand, you have a time-horizon of 15 to 20 years.

    To avoid undue risk, I would advise you to shift from at least one mid-cap fund (preferably L&T mid-cap fund) and go for a very good large-cap fund (example: Franklin Blue-chip fund) or a very good equity-oriented hybrid fund (example: HDFC Prudence Fund). I expect you are investing in Growth option of Direct scheme of these funds.

    Try to increase your SIP every year. Invest patiently. You will reach your goal in ten years. When you will reach near the goal you will have to protect the corpus from market fluctuations. So, you have to shift a majority of the corpus in a liquid fund at that time.

    Beware! I question everything and everybody.


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