Retirement Saving

POSTED BY Reji m ON January 30, 2013 2:59 pm COMMENTS (13)

Dear Gurus

I am planing to start monthly mutual funds investement of Rs 25000. At the moment I am planning to split the amount among these 4 funds:

1) Quantum Longterm Equity (10000)
2) Franklin India Bluechip or HDFC Top 200 (7500)
3) HDFC Mid-Cap Opportunities (3500)
4) IDFC Premier Equity (3500)

My investment time line is 15 years and targeting for Rs 1 crore. Every year I am planning to increase the total SIP amount by 5-10 %.

Could you pls advice me whether is it a right portfolio mix? I’ve selected 2 large cap and 2 mid-small cap funds for this portfolio. Or is it too many funds?

13 replies on this article “Retirement Saving”

  1. Reji m says:

    Finally I’ve kick started my mutual fund investment journey today. Decided to stick to 2 funds
    Quantum Longterm Equity and HDFC Mid-Cap Opportunities. Thx a lot for your inputs!

  2. Raj says:

    Quantum is a very good AMC but if you are opting to it thinking of low expense ratio, also consider the fact that HDFC Equity and Franklin Prima Plus has comparable or even low expense ratios when invested through direct plan.

  3. Dear Tushar, for 20Y from here onwards, 14% is too much. Please tone down your return expectations. Instead of these 3 funds, opt any 2 from your choice & invest. Instead of focusing too much on fine tuning, please focus on action. Start investing. Nike. Just do it.:)



  4. Dear Reji, please cross check the portfolio of all the 4 funds selected by you. Please look for the diversification as well as repeat holdings & based upon your findings, decide, which one to chose & which one to drop from your list. The clarity was not there on 1Cr. Rs. in the first post, that’s why I asked for it.



  5. Reji m says:

    @ Ashal, I’ve used various calculators available online. Actually I’ve few other revenue streams, so my major expenses will be taken care of that. This 1cr is on top of that.

  6. Dear Regi, how do you come to know that 1Cr. Is enough for your retirement?



    1. Tushar R Gawande says:

      I am Planning to start 3 SIP’s of 5K each in following three funds from different Category. Please let me know if I am doing correct choices of fund from each category.
      Objective: I want to invest for 20 Years from Now and I am expecting 12 to 14% of returns on compounded basis from this planning.

      1.ICICI Pru Focused Blue Chip Equity-(G)-
      2.HDFC MidCap Opportunities (G)-
      3.HDFC Balanced Fund-(G) OR HDFC Prudence Fund (G)-

      Note: I already have HDFC Children’s Gif Fund {Investment} SIP of 2K.

  7. Vikash says:

    @ Reji

    Ok, I was not sure that 25k is your SIP amount.

    25k per months for 15 years = 1,26,14400 (12% CAGR)

    I think, you have opted for good funds and SIP amounts. You can start investing. It’s fine.

    Choose growth option, Keep reviewing after ever 2-3 years. Once you investment will reach 1 crore, then shift at least 75% to debt to make retirement amount less risky.

  8. Reji m says:

    Thanks Vikas for your inputs, so you are recommending to go with 2 funds. I’ve read in VRO that we have spread our investment across fund houses for diversification, that is I’ve selected 4 funds.

  9. Reji m says:

    I don’t mind taking risk, that’s why I’ve selected Mid-Small cap funds in the portfolio.
    I am looking at (70:30 ratio- Large:Small). So my main doubt whether it should 2 large cap and 2 mid small cap funds or 1 Large and 1 small-mid cap fund.

  10. Reji m says:

    Rs 25000 is the total SIP amount per month across these 4 funds, it is not per fund. Sorry if I am confused you. 1 cr is what I need for my retirement after 15 years.

  11. Vikash says:

    Let say, If you are planning to invest 10,000 per month. Then divide in 2 funds. Choose growth option as your aim is wealth not income.

    1> HDFC 200 Fund (G) – 6,000
    2> IDFC Premier Equity (G) – 4,000

    Divide between One Large Cap and One mid cap (60:40 ratio).

  12. Vikash says:

    For 1 Crore in 15 years, You need to invest 20,000 every month in diversified equity fund. I am assuming 12% CAGR.

    For lumpsum 25k, Only one fund Quantum Long term Equity (G) or HDFC Top200 (G) is more than enough. You don’t need second one. One fund itself is too much diversified (40-50 companies)

    First decide how much money you need in future as per your goal. If 25 lakh today, then it would be close to 1 crore after 20 years (if you adjust 7% inflation). Around 1.75 crore after 20 years (if you adjust 10% lifestyle inflation). Once you know the future amount, Invest accordingly. Expect 12% if planning to invest in equity diversified fund.

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