Mutual Funds

Your Fund Portfolio

K Venkatasubramanian | Updated on July 20, 2014


I want to invest ₹6,000 every month in mutual funds for 10 years. Please suggest suitable schemes so that I would be able to accumulate ₹15 lakh after 10 years.

- Malav Desai

If you invest ₹6,000 every month and the returns are 12 per cent annually, you will be able to achieve your target of ₹15 lakh in 10.5 years, a little more than your stated timeframe. If you increase your contribution marginally after a few years as and when your surplus increases, you may reach the target as originally intended.

Since you are just starting out, large-cap schemes would be appropriate for your purpose. Invest ₹3,000 each in ICICI Pru Top 100 and UTI Equity.

Book profits or exit units if you reach your target ahead of time and move the proceeds to safer debt avenues.

I am 48, unmarried, and live with my mother. I work for a private company. My investments in mutual funds through the SIP route are ₹1,000 each in HDFC Top 200 and HDFC Equity. I wish to invest another ₹1,000 each in two different schemes through the SIP mode. My time horizon is seven-eight years.

If I invest a lumpsum, instead of parking money through systematic investment plans (SIPs), will I get attractive returns in three-five years?

- Avijit Das

You have invested in two funds from the same asset management company. HDFC Equity and HDFC Top 200 have considerably overlapping portfolios.

So, you can retain HDFC Equity and exit HDFC Top 200.

Now, along with your existing SIP investments, you can invest a total of ₹4,000. For this amount, two schemes will suffice as otherwise your investments would be spread too thin. Invest the additional ₹2,000 in Quantum Long Term Equity.

It is generally not advisable to invest as a lumpsum in the markets, especially in the case of retail investors.

A certain degree of timing on entry would be required, which may not be easy. Also, SIPs would allow you to average out costs better by allowing you to buy units across market cycles. It is assumed that you have adequate medical cover for your mother and for yourself.

Send your queries to >

Published on July 20, 2014

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor