How to accumulate ₹40-50 lakh in 10 years for child’s education?

My current investments in Mutual Funds through Systematic Investment Plan (SIP) include 3,000 each SBI Bluechip MF (I am raising 1,000 anytime year), Parag Parikh Flexi Cap Fund, Kotak Equity Opportunities Fund, SBI Small Cap Fund, and Axis Mid Cap Fund. I can increase my SIP amount by around 10% every year in all my mutual funds. i also invest 3,000 per month in PPF and value of fixed deposit 3 lakhs. I have one 100 Monthly Recurring Deposit.

Apart from these I also invest 15,000 in shares every month. Please review my portfolio and suggest if I need to make any changes to achieve my goal in the given time frame.

Name withheld on request

As you are investing for child’s education after 10 years, you should be able to achieve your objectives of having 40-50 lakhs after 10 years, if you maintain the current savings rate. However, some changes in the portfolio may be required. You can consider exiting SBI Bluechip Fund and replacing it with an index fund like SBI Nifty Index Fund Growth due to its low expense ratio. You should also consider allocating a part of the money in SBI Bluechip in a passive international fund tracking S&P 500 or MSCI World Indices to get geographical diversification.

To cover the risk of death while saving for this goal, you should also consider taking a term life insurance policy. To reduce the risk of a sharp market correction, you should consider gradually moving into fixed income instruments about three years in advance through a Systematic Withdrawal Plan (SWP), before the money is required.

my company bites 2,700 for provident fund (PF) from my salary. I have completed 10 years here and want to know details to continue pf account after 15 years. How is the interest calculated, and how much amount will I get?

Name withheld on request

EPF interest is calculated on the monthly closing balance and is usually credited to the account at the beginning of the financial year. The interest rate varies from year to year and is announced by EPFO ​​every year.

There is no restriction on continuing the EPF accounts as long as you are working.

The 15 year continuation process you are referring to is probably for PPF account, which is a different scheme. Since the rate of interest varies every year, and your contribution to the EPF account may also change every year, it is difficult to estimate the final value of your EPF.

Vishal Dhawan is a Certified Financial Planner and Founder of Plan Ahead Wealth Advisors, a SEBI registered investment advisory firm.