I am 30 years old. I want to create a corpus of Rs 50 lakh by 2039. My risk profile is moderate. I am investing on a monthly basis as below:
PPF Rs 10,000
NPS Rs 5,000
Mirae Asset Large Cap Fund Rs 1,000
Parag Parikh Long Term Equity Fund Rs 1,000
SBI Small Cap Fund Rs 1,000
SBI Banking & Financial Services Fund Rs 1,000
Tata Digital India Fund Rs 1,000
Are my investments fine?
Prableen Bajpai, Founder & Managing Partner, Finfix Research & Analytics, responds:
You have a balanced portfolio with a good mix of fixed income and market related products, which goes with your moderate risk appetite. You would be able to reach your goal of Rs 50 lakh comfortably.
Your SIPs of Rs 5,000 a month will be able to generate a corpus close to Rs 50 lakh over the next 20 years assuming 12% compounded annual growth rate (CAGR). In addition, your fixed income investments will create a corpus of close to Rs 90 lakh at 8% CAGR (clubbing NPS investment with PPF since no other details have been mentioned).
However, you can look at consolidating your mutual fund portfolio. Currently, your schemes are spread across five different categories – one large cap, one multi cap, one small cap and two sectoral funds from the banking and technology space with an allocation of Rs 1,000 each. With a moderate risk profile, sectoral funds should be avoided, and you can instead increase the allocation towards the multi cap fund already there in your portfolio.