I am 34 years old and I have a moderate to aggressive risk profile. I am investing Rs 25,000 monthly in Quant Active Midcap Fund. I want to retire with a Rs 5 crore corpus in 20 years. I also have been investing Rs 10,000 in Sukanya Samriddhi for four years, and Rs 10,000 in HDFC Sanchay with an aim to get Rs 50 lakh for education and marriage of daughter in 16 years
I want to invest Rs 20,000 extra monthly in index fund and/ or bluechip fund to achieve the goal.
Assuming an annual return of 12%, you need to invest Rs 50,000 every month to create a corpus of Rs 5 crore in 20 years. As you can see, your investments are not enough to create the target corpus. You can either relook at your targets to come up with a realistic number. If you can increase your investments, you can go ahead with your investments.
Also, investing a small amount in a government-backed plan or insurance plan is not enough to create a corpus of Rs 50 lakh for your daughter. Assuming an annual return of 12%, you need to invest around Rs 8,600 every month to create a corpus of Rs 50 lakh in 16 years.
You have been investing in a mid cap schemes. These schemes are extremely risky and they are suitable for aggressive investors who are ready to take a lot of risk and face volatility. You should always choose your mutual funds that are in line with your goals and risk profile. Your risk profile is vague- only you will know what you mean by moderate to aggressive risk. If you are a moderate investor, you may invest in flexi cap mutual funds. Best flexi cap funds
If you want to take aggressive bets, you can choose mid cap, small cap, sector funds. However, make sure how much you want to invest in risky options and rebalance the portfolio regularly.
Best mid cap funds
Best small cap funds
If you want to grow wealth without taking too much risk and volatility, you can invest in large cap schemes. Please remember that these schemes will offer you 10-12% over a long period.
Best large cap funds