Would appreciate your guidance on my SIP. Here are the details of my current SIP contributions. I am 31 years old, debt-free, and living in a rental house. I’m not interested in purchasing an expensive home. My main goal is to secure at least ₹40,000 per month after I turn 45 or 50. Could you please provide your suggestions?
Axis Small Cap: Rs 10,000
PPFAS Flexi Cap: Rs 9,500
Axis Mid Cap: Rs 9,000
Kotak Hybrid Fund: Rs 6,000
Invesco Gold Fund: Rs 5,500
UTI Index Fund: Rs 5,000
Mirae Tax Saving Fund: Rs 4,000
Mirae Large & Mid Cap: Rs 1,500
ICICI Small Cap: Rs 1,500
Name withheld
Reply by Raj Khosla Founder and MD MyMoneyMantra.com
Your existing SIPs are a mix of funds that cover different market caps, asset classes, and objectives. SIPs across categories of small-cap, mid-cap, flexi-cap and index funds capture growth across different segments of the market.
Invesco Gold Fund provides an inflation hedge & Mirae Tax Saving Fund offers tax benefits with equity exposure. You should fine-tune your portfolio, reduce the overlap of same-category funds like Axis Small Cap and ICICI Small Cap, and direct freed-up funds into large-cap funds for stability.
Maintain strong equity exposure for growth till the age of 45 with higher allocation in diversified equity funds and index funds. As you approach age 45, gradually consider increasing your allocation to hybrid and balanced funds to reduce volatility.
Basis your current investment, assuming an average return of 12% from equities over the next 15 to 20 years, you can create a corpus that could yield around Rs 40,000 per month. Revisit your SIPs every 2-3 years to align with market conditions and financial goals. Consult a certified financial advisor for detailed portfolio planning.
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