I am currently investing Rs 1.5 lakh in PPF (to help save taxes under 80C). I also have a SBI ULIP policy (was opened by my father) and I have been investing Rs 1.5 lakhs every year for the past two years. I have just started investing in these mutual funds:
Parag Parikh Flexi Cap Fund: Rs 1,000
Axis Bluechip Fund: Rs 1,000
Axis Midcap Fund: Rs 1,000
Mirae Asset Emerging Bluechip Fund: Rs 1,000
SBI Small Cap Fund : Rs 500
UTI Nifty Index Fund: Rs 500
I am planning to increase my investment slowly.
I am investing for wealth creation. Is my portfolio good enough or should I make any changes?
–Mohit Nagrani
You have not shared details like your target corpus, your financial status, your risk profile, among others. Saving and investing whatever you can will not help you to retire early. You should have a target retirement corpus and invest diligently to create the required corpus. You are currently investing Rs 6,000. Assuming an annual return of 12%, your monthly investment would help you to create a corpus of Rs 30 lakh in 15 years. Assuming an annual return of 8%, your investment in PPF will help you to make another Rs 43,000 in 15 years. It’s not possible to calculate the likely returns from your ULIP plan as we don’t have the details. Assuming 12% returns, it may offer you 62 lakh in 15 years.
As you can see, these investments are not enough to retire early. You may have another 30-40 years to live, a corpus of Rs 1.3 crore may not be enough to take care of your living expenses.
It is also not possible to comment on your mutual fund portfolio as you haven’t shared your risk profile. You have chosen good individual performers but it is not possible to comment on the suitability of these schemes to you.
You are investing in two large cap schemes, a flexi cap scheme, mid cap scheme, large & mid cap scheme, and small cap scheme. Large cap schemes are recommended to conservative investors who want to create wealth over a long period of time without too much volatility. Flexi cap schemes are meant for moderate investors. Mid cap, large & mid cap, small cap schemes are meant for aggressive investors who can take high risk and tolerate a lot of volatility.
