I m investigating through an online app, without any expert help.
My investments are:
Aditya Birla Tax Relief 96 ELSS Rs 2,000
Motilal Oswal Long Term ELSS Rs 500
Reliance Small Cap Rs 2,000
SBI Small Cap Fund Rs 1,500
L&T Midcap Fund Rs 1,000
Mirae Asset Emerging Bluechip Fund Rs 1,.500
I am taking time period of 20 years. My goals include childrens' education and marriage.
Am I investing right?
-- Praveen Sharma
Veena Malgonkar, certified financial planner, KM Wealth Solutions, responds:
Congratulations on starting early with an SIP of Rs 8,500. Most of the SIPs are in mid and small caps. It would be beneficial to stop one of the small cap funds and invest in a multicap fund like HDFC Equity fund. This would give more balance to your portfolio as mid and small cap funds are likely to be much more volatile.
At an average return of 14 per cent, in 20 years you should have a corpus of Rs 1.12 crore.
However along this long journey - when valuations become very expensive, do look at booking profits and re-entering at the time of an inevitable correction. This will give some alpha to your portfolio.