Vidya Bala, Co-Founder, PrimeInvestor.in replies: We expect you have been investing in the said Equity Fund for quite some time and have not entered recently. With just one more year left, you should ideally use the plans you have put in place for a long time to reach your goal in August 2022. Even if you invest Rs 15,000 per month for the next 12 months, your return expectation is more than 20%, which is not an easy task to achieve. The sharp rally in the recent past can give you a sense that the market can deliver that kind of return. However, this would mean taking on a significantly higher amount of risk (and capital loss) to anticipate the delivery of the equity in one year. So, consider taking the plunge into existing investments. Only FD, liquid or ultra-short debt funds fit the one year time frame and not equity funds.
I am 27 years old. I am investing Rs 2,000 in Mirae Asset tax saver The funds invest Rs 1,000 in Parag Parikh Flexicap Fund, Rs 1,000 in Edelweiss Balanced Advantage Fund, Rs 500 in Axis Small Cap Fund and Rs 500 in Nippon India US Equity Opportunity Fund through SIPs every month. Are these good bets for the long term? i hope to earn 10% CAGR.
AMFI Registered Mutual Fund Distributor Rishabh Desai Answer: With your fund selection, allocation and combination of domestic and international equities I do not see any problem in your portfolio generating 10% CAGR over long term in good market conditions. Your portfolio can earn even more in good market conditions. You are investing 40% of your monthly portfolio corpus in Mirae Asset Tax Saver Fun. If the amount is for tax saving purpose then you can continue your SIP, but if not then I recommend you to discontinue your SIP and distribute that amount in a new flexi cap or focused fund and a mid-cap fund Give. Since you are a SIP investor, it is very important for you to note that the exit point is more important than the entry point. Whenever you plan to redeem your corpus in future, keep a buffer period for around one or two years at the end of your time frame and keep your corpus in good/high market conditions to avoid any hit on your returns. Redeem in