I am 42. I am running SIPs totalling ₹10,500 in the following funds since 2014 and plan to continue for the next 15 years to build a retirement corpus : HDFC Equity - ₹1,500, HDFC Midcap Opportunities - ₹3,000, Franklin High Growth Companies - ₹1,500, ICICI Pru Value Discovery - ₹1,500, Birla MNC - ₹1,500 and SBI Pharma - ₹1,500 . I request you to kindly review my portfolio and suggest alternate funds if necessary.

Sasikumar S

If you invest ₹10,500 for 15 years and your funds earn a compounded annual return of 12 per cent, you will end up with a corpus of ₹53 lakh by 2029.

Since you seem to show a high risk appetite going by your choice of funds, you can probably peg up the return expectation to 15 per cent. This will fetch a sum of about ₹71 lakh at the end of the 15-year period.

The call you have to take is whether a sum of ₹50-70 lakh is enough to sustain your retirement expenses. If you feel it is not enough, you will then have to step up your SIPs as and when your investible surplus increases. Alternatively, if you have any investments in fixed deposits, NSC, PPF, etc or even the NPS and plan to continue, they can also come in handy to bridge the shortfall, if any.

The funds you have chosen have a dependable track record of good performance. But barring perhaps HDFC Equity which is a large-cap oriented fund, the rest are either multicap (Franklin High Growth, ICICI Pru Value Discovery), midcap (HDFC Mid-cap Opportunities) or thematic funds (Birla MNC, SBI Pharma). The risk-return proposition for all these funds is higher than large-cap oriented funds. But given that you have started your retirement savings a bit late, it may help to have more aggressive bets.

But as thematic funds may perform in fits and starts, it is best you have a target return for these funds and exit when the going is good. You can replace them with safer diversified funds.

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