I am 31 and am investing Rs 1,000 every month through SIPs in HDFC Top 200. I also have Rs 2,000 SIP in Kotak Select Focus fund. I further plan to invest additional Rs 2,000 every month to build Rs 20 lakh savings in 15 years. Please guide on my choice of funds.
Bhavin Shah, Baroda
To build Rs 20 lakh corpus in 15 years you need to make monthly investments of Rs 4,000 earning an annualised 12 per cent return or Rs 3,000 earning an annualised 15 per cent return. You have made an early start which will go a long way in achieving your financial goals.
When building a mutual fund portfolio for the long run, it is important to have a well diversified portfolio of funds that provides stability and growth. Both the funds that you are investing in are good options for the long run and the goal that you have in mind. By staying invested in them and reviewing their performance once a year, you will be comfortable in noting their progress towards your goal and also achieve it in good time.
