I am 25 years old, single and my salary is Rs 42,000. I have taken Rs 50 lakh term plan. I have started investing two years ago in mutual funds. I have been increasing my SIP amount every year. Currently, I am investing Rs 7,000 per month in four mutual fund schemes. I wish to increase my SIP amount every year by Rs 1,000-1,500. The current value of my portfolio is Rs 1.5 lakh.
My current portfolio details are as follows.
SBI Bluechip Fund: Rs 2,500
Nippon India Small Cap Fund: Rs 1,500
Kotak Standard Multicap Fund: Rs 2,000
Axis Midcap Fund: Rs 1,000
I wish to see my folio value around Rs 1 crore after 15 years, and Rs 2.5-3.0 core after 25 years.
I want to stop my investments in SBI Bluechip Fund and start investing the money in SBI Small Cap Fund. From next year, I want to start an SIP in a mid cap fund. Please suggest a mid cap fund. Also, I wanted to do STP of amount invested in SBI Bluechip Fund to SBI Small Cap Fund. Please tell me whether the idea to do an STP is right? If so, when to do an STP. Please review my portfolio. I have high risk appetite.
– Sandip Burange
You are currently investing in a large cap scheme, small cap scheme, multi cap scheme and a mid cap scheme. Mid and small cap schemes are meant for aggressive investors, while large cap schemes are suitable for conservative investors. Moderate equity investors can consider investing in multi cap schemes.
Hope you have done a proper risk assessment, and not chosen the risk profile and schemes because of the potential to earn higher returns. Many investors choose high-risk categories like mid cap and small cap schemes for higher returns, but many of them find during a bad phase in the market that they can’t handle the huge short-term losses and extreme volatility. So, proceed with caution.
You should invest around Rs 19,818 every month to create a corpus of Rs 1 crore in 15 years. You need to invest Rs 15,809 every month to create Rs 3 crore in 25 years. We are assuming an annual return of 12 per cent on investments in this calculation.