Publication details: Money Manager – CNBC Bajar – 01-06-2016
Responses, opinion and view from Kartik Jhaveri.
Question sent by Chirag Patel :-
I had started an SIP of Rs. 1,000 each in 5 mutual fund schemes for a period of 20 years. The break up is as follows: 1 mid cap, 2 small cap and 2 sectoral schemes.
I want to accumulate Rs. 60 lakhs after 20 years. So is my investment enough or do I need to increase it gradually?
- If you continue your total SIP of Rs. 5,000 for the next 20 years, you can amass approximately Rs. 65 lakhs. This is assuming a growth rate of 14% p.a.
- Hence you can comfortably reach your target of Rs. 60 lakhs after 20 years.
- You can consider restructuring your current SIPs in the following manner:
- Diversified – 40% (i.e. Rs. 2,000)
- Mid & smallcap – 40% (i.e. Rs. 2,000)
- Sectoral – 20% (i.e. Rs. 1,000)
- Also avoid excess diversification.