I’m planning to start SIP in these funds:
Canara Robeco Bluechip Equity Fund: Rs. 5000
Canara Robeco Small Cap Fund: Rs.5000
Quant Active Fund: Rs 5,000
HDFC Index Fund -S&P BSE Sensex: Rs. 2,000
Quant Mid Cap Fund: Rs 3,000
Are these funds good enough to achieve my goal? If not, then please suggest some alternative funds.
–Anita Rani
Assuming an annual return of 12%, you need to invest around Rs 17,000 every month to create Rs 6 crore in 30 years. You have a long time to retire. Don’t choose a round figure as your target corpus for long-term goals. With the impact of inflation, you may need a large amount for very long-term goals. Work with real numbers, inflation, and taxes to reach a realistic target.
You have chosen a large cap scheme, small cap scheme, multi cap scheme, large cap index scheme, and mid cap scheme. Large cap schemes are recommended to conservative equity investors to grow wealth without taking too much risk and volatility. Multi cap schemes, mid cap schemes and small cap schemes are recommended to aggressive investors who can take a lot risk and volatility. If you are investing as per your allocation plan, you may go ahead with your investments. Otherwise, try to fix an allocation plan before starting to invest. For example, if you are investing in large cap schemes for diversification and stability, figure out how much you want to invest in them. Similarly, what percent you want in risky options like small cap schemes.
