I am 46 years old and I have invested in Systematic Investment Plans (SIPs) in the following mutual funds: Canara Robeco Emerging Equities Fund – Direct Growth ( ₹1,000); HDFC Index Sensex Direct Plan – Growth ( ₹1,000); Mirae Asset Tax Saver Fund – Direct Growth ( ₹1,000); Parag Parikh Flexi-Cap Fund – Direct Growth ( ₹1,000); Axis Bluechip Fund-Direct Plan Growth ( ₹500); Invesco India Contra Fund Direct Growth ( ₹1,000); and Quant Active Fund-Direct Growth ( ₹1,000). Please advise whether it is ok in the present market to achieve the goal of child education ( ₹10 lakhs) and their marriages ( ₹10 lakhs). For how many years do I have to keep investing every year, and how much can I increase my investment in SIP? Also, should I diversify funds into equity, debt, tax saver and hybrid after one year?
—Anand Kavlekari
More information about your child’s age and time frame for these goals would have helped to share more detailed input on your query. If we assume you want to submit ₹10 lakh in eight years for your child’s education, so the current SIP ₹6,500 can be useful to you. On the other hand, if your child’s marriage target is 15 years i.e. after seven years of education goal, then you will be able to deposit. ₹8 lakh investment ₹6,500 every month after completing the education target.
However, if you increase your SIP by 5% every year, you will be able to achieve both these goals ₹10 lakh after eight and 15 years respectively for your child’s education and marriage.
The funds you are investing in currently are good, and you have also tried to diversify these investments into index, large-cap, large- and mid-cap, flexi-cap, multi-cap and value funds Is. Since your goals are long term, you can continue to invest in these funds through SIP without any problem.
Harshad Chetanwala is the founder, MyWealthGrowth.com. Have personal finance questions? Email mintmoney@livemint.com.
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