I have been investing in mutual fund with investments worth Rs 4.5 lakh. I have been investing through monthly SIPs of Rs 8,000 in HDFC Top 200, Rs 4,000 in HDFC Equity, Rs 3,000 in IDFC Premier Equity and Rs 5,000 in HDFC Prudence. My financial goal is to accumulate Rs 20 lakh for my child’s education in 7 years and Rs 50 lakh in 16 years. Please advise any changes to be made considering core and satellite approach as I can invest additional Rs 5,000
Jaydeep Zala
Investing regularly through SIPs in mutual fund has its advantages that you would have experienced by now. Moreover, it is a good start to have clear financial goals to invest appropriately in them. You are currently investing Rs 20,000 every month in funds which you plan to raise to Rs 25,000 and your current investments are worth Rs 4.5 lakh. This investment should be sufficient to achieve your financial goals, if your portfolio earns a combined 12-15 per cent annualised returns, which is possible.
The funds that you are currently investing in are good and you should continue investing in them regularly. To strengthen the core of the portfolio you can consider adding a large-cap fund, such as DSPBR Top 100 or ICICI Prudential Focused Bluechip Equity to increase allocation to the core of your portfolio. Make sure to invest regularly and evaluate the progress made by your investments at least once a year to assess it with your financial goals.
