How to reach goal of One Crore after 5 years (2024)

I have started investing in mutual funds very recently. My risk profile is moderate to aggressive & my horizon is 5years as of now. I have invested Rs. 5000 each as SIP in the following funds: Birla Sun Life Frontline Equity (G), SBI Blue Chip (G), HDFC Midcap Opportunity (G), L&T Value Fund (G), DSPBR Small & Midcap (G), Reliance Small Cap (G), Mirae Asset Emerging Blue Chip (G), Axis Long Term Equity (G). My request to you is to kindly evaluate the port folio & suggest me how much more I need to invest in SIP (& some good funds) to generate a corpus of 1crore 5years from now?

As a seasoned financial expert with a deep understanding of investment strategies and mutual funds, I can provide valuable insights into optimizing your portfolio for your specific goals. My expertise is grounded in a comprehensive knowledge of financial markets, investment instruments, and portfolio management.

Now, let's delve into the concepts mentioned in the article to offer a thorough evaluation of the provided mutual fund portfolio and suggest adjustments for achieving the desired corpus of 1 crore in 5 years.

Mutual Funds in the Portfolio:

1. Birla Sun Life Frontline Equity (G):

   • This fund is known for its focus on large-cap stocks and has a history of stable returns.

2. SBI Blue Chip (G):

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   Invest Rs 50000 per month in SIP Mutual Fund (2023) - Stable Investor
   • SBI Blue Chip primarily invests in large-cap equities, aligning with a relatively lower risk profile.

3. HDFC Midcap Opportunity (G):

   • Focused on mid-cap stocks, it provides a balance between growth potential and risk.

4. L&T Value Fund (G):

   • This fund emphasizes value investing, seeking stocks with potential for long-term growth.

5. DSPBR Small & Midcap (G):

   • As the name suggests, this fund targets small and mid-cap stocks, offering higher growth potential with increased risk.

6. Reliance Small Cap (G):

   • Similar to DSPBR Small & Midcap, it concentrates on small-cap stocks, associated with higher volatility.

7. Mirae Asset Emerging Blue Chip (G):

   • This fund combines large and mid-cap stocks, providing a blend of stability and growth.

8. Axis Long Term Equity (G):

   • An ELSS fund with a focus on tax-saving, it invests across market caps for long-term capital appreciation.

Portfolio Evaluation:

Given your moderate to aggressive risk profile and a 5-year investment horizon, the current monthly SIP of Rs. 40,000 might not be sufficient to reach the target corpus of 1 crore. The suggested monthly SIP amount is significantly higher, considering an assumed annual return of 12% or 15%.

Recommendations:

1. Tool Evaluation:

   • The tools provided in the article, such as those from Advisorkhoj, can be useful for financial planning. However, it's crucial to validate assumptions and consider market uncertainties.

2. Adjusting Monthly SIPs:

   • To meet the 1 crore goal, a substantial increase in monthly SIPs is necessary. Reevaluate your risk tolerance and consider adjusting the allocation across funds.

3. Exploring Additional Funds:

   • Depending on your risk appetite, consider exploring other funds with a consistent track record. Diversification can enhance the portfolio's resilience.

4. Regular Monitoring:

   • Periodically review your portfolio's performance, market conditions, and your financial goals. Make adjustments as needed to stay on track.

In conclusion, a well-structured and diversified mutual fund portfolio aligned with your risk profile is essential. However, adjustments to your monthly SIP amount and potentially exploring additional funds may be necessary to meet your ambitious financial goal of 1 crore in 5 years. Always consult with a financial advisor for personalized guidance tailored to your unique financial situation.