I am a 39-year-old and want to invest for my retirement corpus. I plan to invest Rs 35,000 monthly for 20 years in following SIPs-
– UTI Flexi Cap Fund
– Kotak Emerging Equity Fund
– Aditya Birla Sun Life Flexi Cap Fund
– SBI Large & Midcap Fund Mirae Asset Large Cap Fund
– DSP Midcap Fund
– Invesco India Midcap Fund Kotak Bluechip Fund
– PGIM India Midcap Opportunities Fund
– Quant Active Fund
– PGIM India flexi cap.
— Nitin Awati
Rushabh Desai, an Amfi-registered mutual fund distributor, based out of Mumbai, responds:
You don’t need 12 equity mutual funds to create your investment portfolio. You will be over diversifying by investing in so many funds as each of these funds would invest in the range of around 30 to 80 stocks. Overdiversification will obstruct your portfolio from generating optimum returns.
Keeping your goal, age and 20-year investment time horizon in mind, I suggest you the following funds along with their allocation for your SIP investments
– Invesco India Contra Fund (20%)
– DSP Mid Cap Fund (20%)
– SBI Small Cap Fund (20%)
– Canara Robeco Flexi Cap Fund (15%)
– Mirae Asset Focused Fund (15%)
– Motilal Oswal S&P 500 Index Fund (10%)
This selection will give you ample diversification for your investment portfolio which will help you build a retirement corpus.
– UTI Flexi Cap Fund
– Kotak Emerging Equity Fund
– Aditya Birla Sun Life Flexi Cap Fund
– SBI Large & Midcap Fund Mirae Asset Large Cap Fund
– DSP Midcap Fund
– Invesco India Midcap Fund Kotak Bluechip Fund
– PGIM India Midcap Opportunities Fund
– Quant Active Fund
– PGIM India flexi cap.
— Nitin Awati
Rushabh Desai, an Amfi-registered mutual fund distributor, based out of Mumbai, responds:
You don’t need 12 equity mutual funds to create your investment portfolio. You will be over diversifying by investing in so many funds as each of these funds would invest in the range of around 30 to 80 stocks. Overdiversification will obstruct your portfolio from generating optimum returns.
Keeping your goal, age and 20-year investment time horizon in mind, I suggest you the following funds along with their allocation for your SIP investments
– Invesco India Contra Fund (20%)
– DSP Mid Cap Fund (20%)
– SBI Small Cap Fund (20%)
– Canara Robeco Flexi Cap Fund (15%)
– Mirae Asset Focused Fund (15%)
– Motilal Oswal S&P 500 Index Fund (10%)
This selection will give you ample diversification for your investment portfolio which will help you build a retirement corpus.
You may want to invest some amount during corrections as this will help you generate higher returns than the average. Lastly, equity markets are very volatile in nature and a substantial dip can hurt your portfolio returns. Thus, towards the end of your investment period do keep a buffer time period of around a year and try to redeem your corpus in good market conditions.
