Mutual fund investment: I want to accumulate Rs 10 crore in 25 years. Am I on the right track?

In each edition of ET Wealth, our panel of experts answer questions related to all aspects of personal finance. If you have a question, send it to us immediately at [email protected]

I’m 40 years old. I started investing in mutual funds 10 years ago. My current wallet is worth Rs 60 lakh. My SIPs include Rs 8,000 in Axis Focused 25, Rs 5,000 in HDFC Mid-Cap Opportunities and Rs 5,000 in Franklin India Feeder – Franklin US Opportunities which I quit from Jan 2022 and started Motilal Oswal Nasdaq 100 FOF . I want to accumulate Rs 10 crore in 25 years. We look forward to your suggestions.

Rushabh Desai, Founder of Rupee With Rushabh Investment Services responds, “I would recommend stopping additional inflows into the HDFC Mid-Cap Opportunities Fund at this time as the fund is lagging its peers. Please do not refund the amount because the fund is backed by a well-experienced manager and team Let the amount increase, but in turn you may consider the Kotak Emerging Equity Fund as a replacement Your overall portfolio is very concentrated and the allocation is a bit disproportionate I recommend that you add one more fund to your three portfolio funds and reduce your existing allocation in each of the funds Going forward, I recommend that you invest Rs 4,500 per month in each of the following funds – Axis Focused 25 Fund, UTI Flexi Cap Fund, Kotak Emerging Equity Fund (Mid Cap) and Motilal Oswal FOF Nasdaq 100. Assuming a CAGR of 12%, Rs 18,000 invested per month for the next 25 years ra will yield around Rs 3.4 crore and your current portfolio value of Rs 60 lakh compounded at 12% CAGR for the next 25 years yield around Rs 10.2 crore.”

I am 40 years old and my son is one year old. I want to start investing for his education, the current cost of which is Rs 40 lakh. I will need this money in 18 to 20 years. How should I plan my investment towards this goal? I opened a PPF account in his name and have my own demat account.

Raj Khosla, Founder and Managing Director of responds, “Investing in children’s education from an early age will be the wisest investment decision. Assuming a 6% inflation rate and an average return on your 8% investment you would need around Rs 1.20 crore after 20 years The investment strategy should be aggressive with high risk and high return assets You should invest Rs 25,000 per month to reach your objective.PPF offers tax-free returns and hence invests Rs 1.5 lakh per annum in the same.The balance of Rs 12,500 per month is to be invested in the equity market through the MF SIP route.The Suggested Funds for the SIP are HDFC Top 100, UTI Flexi Cap, DSP Flexi Cap, Axis Mid Cap Fund and SBI Small Cap Direct investment in stock needs deep knowledge and investment carries the highest risk For unforeseen events, ensure you to have u n term plan and a floating family health policy. Review your portfolio every three years and realign basic cash requirements.

Dolores W. Simon