My milestones are:
Retirement:25 years – Rs 5,00,00,000
Home: 25 years – Rs 1,00,00,000
College: 15 years – Rs 30,00,000
Car: 5 years – Rs 5,00,000
Vacation: Every 1 year – Rs 1,00,000 core
The mutual fund schemes that I invested in are given below:
Mirae Asset Emerging Bluechip Fund – Rs 6,000
Parag Parikh Flexi Cap Fund – Rs 6,000
UTI Nifty Index Fund – Rs 6,500
UTI Nifty Next50 Index Fund – Rs 6,000
Short Duration Debt Fund – Rs 2,000
Corporate Bond Debt Fund – Rs 2,000
Banking and PSU Fund – Rs 3,000
Kotak Emerging Equity Fund – Rs 4,000
Axis Small Cap Fund Direct plan – Rs 4,000
Edelweiss Greater China Equity Off-shore Fund – Rs 2,500
Commodities: Gold Fund – Rs 3,000
Am I investing correctly?
— Unnikrishnan RS
You are broadly going in the right direction. In insurance, you have not mentioned which product you have taken. I presume it is a ULIP. While generally ULIPs are higher cost and lower liquidity than mutual funds, there are some low cost ULIPs as well which you have to figure out from the benefit illustrations.
The funds that you have picked are good but so many schemes in a portfolio can drag down the returns due to over-diversification. There will be overlapping of portfolios. One should have maximum 5-6 schemes in a portfolio.
Secondly, if you are a moderate risk taker, thematic funds like Edelweiss Greater China Equity FoF might not match your risk appetite. Invest in thematic funds only if you know about the theme very well and are aware of the downside. We generally ask moderate risk takers to stick to flexi cap strategies with a cushion of large caps. Small cap funds are only very risky. We would suggest taking help from a seasoned financial planner to invest your hard-earned money.
