I want to accumulate Rs 3 crore in next 10 years for my early retirement. Am I on the right track?

Vidya Bala, Co-Founder, PrimeInvestor.in replies, “It is true that some of your funds are underperforming. But funds like ICICI Pru Value Discovery’s performance is due to the ‘value’ theme not taking off for long. Stop SIPs in all the funds except HDFC Midcap Opportunities. Hold them until such time you are comfortable switching them incurring lower taxes. Start SIPs in UTI Nifty 50, Motilal Oswal Nifty 500 and continue in HDFC Midcap Opportunities. Mirae Asset Emerging Bluechip is fine but will have restriction on SIP amount. Add debt component through a fund like ABSL Floating Rate Fund. Assess performance of the mid-cap fund next year. Else move to a mid-cap index fund.”

I am 25. I began SIPs of Rs 2,500 every in Kotak Standard Multi-Cap Fund and Franklin Templeton Mutual Fund two years in the past. I want to proceed the SIPs until I retire at the age of 60. However, I have to purchase a home for which I might need to liquidate all my investments. I intend restarting the SIPs after that and persevering with until retirement. Will this assist accumulate a wholesome corpus?

Raj Khosla, Founder and Managing Director, MyMoneyMantra.com replies, “You have taken the right decision by starting SIPs at an early age. SIPs offer extreme liquidity —you can easily withdraw funds as per your requirements, and there is minimal exit load. Since you enjoy the luxury of a long-term perspective, you should ensure investment consistency. Do not scale down existing investments and do hike SIP contributions on a regular basis, depending upon your income and life goals. Review and rebalance your portfolio once in three years. Also, opt for health cover and term plan for protection against unforeseen contingencies.”