Mirae Asset Bluechip Fund: Rs 10,000/month
Mirae Asset Large Cap Fund: Rs 6,000/month
Axis Bluechip Fund: Rs 10,000/month
SBI Small Cap Fund: Rs 5,000/month
ICICI US Bluechip Fund: Rs 5,000/month
Quantum Value Discovery Fund: Rs 4,000/month
I am 34 years old. Could you please comment whether the fund selection matches my risk profile till I become 40 years old?
– Satish Jayachandiran
Two, always try to quantify your goal. It is extremely important to have a number for each goal, especially when it comes to long-term goals like retirement, children’s education, etc. For example, if a college course cost around Rs 10 lakh now. It will cost around Rs 46.60 lakh after 20 years, assuming an annual inflation rate of 8%.
Follow the same strategy for your retirement planning. Find out your current cost of living and inflate it by a realistic number to arrive at a target retirement corpus. Once you know the target, you can find out how much you need to invest every month to achieve it. Without these basic calculations, you would invest whatever you can or choose a random number for your retirement corpus. These may may not be enough to take care of your long-term goal.
You are given the name of two schemes wrong. It seems, you are talking about Mirae Asset Emerging Bluechip Fund and ICICI Prudential Value Discovery Fund.
You are currently investing in two large cap schemes, a value scheme, large & mid cap scheme, international scheme, and small cap scheme. Among these, the small and large & mid cap schemes have higher risk element in them. They are meant for aggressive investors who can take extra risk and volatility. Make sure that you are okay with the extra risk in these schemes.
You should reassess your risk profile and try to build a sharply focused portfolio in line with your risk profile. Also, adopt a goal-based investment strategy that would help you to quantify your goals and invest regularly to build your target corpus.