• Home
  • National News
  • A balanced portfolio of mutual funds can help fulfil medium-term goals
A balanced portfolio of mutual funds can help fulfil medium-term goals
National  
livemint

• From an investment perspective, there are two objectives that need to be satisfied for such a corpus
• For your medium-term goal in five years, you would need to have a balanced portfolio that provides for some growth without taking too much risk

 

I am 27 years old and have investments in equity-linked savings scheme (ELSS) of ₹1 lakh. I have a lump sum of ₹5 lakh that I want to invest. I also want to start monthly systematic investment plan (SIP) investments of ₹15,000. My first goal is to build an emergency fund of ₹5 lakh from my lump sum. The second is to accumulate ₹15 lakh in the next five years. Please suggest suitable schemes for both goals.
—Ranjan Soti
 
Having an emergency corpus ensures security in unfortunate situations that are not covered by traditional insurance schemes. At your age, having a ₹5 lakh emergency fund will serve you well if you need to go for a spell of time without pay, or for other unforeseen family needs.
 
From an investment perspective, there are two objectives that need to be satisfied for such a corpus. One, the money should not be exposed to too much risk, and two, it should be available quickly when required. The mutual fund category that ticks both these boxes is a liquid fund. You can choose such funds from any major mutual fund company such as Axis Mutual Fund, Reliance Mutual Fund or HDFC Mutual Fund, and park your money there. Some of these funds also have a facility called “insta redemption", which allows you to use their app to get your money credited to your bank account in a matter of 30 minutes.
 
For your medium-term goal in five years, you would need to have a balanced portfolio that provides for some growth without taking too much risk. You are planning to invest ₹15,000 a month for this purpose, but calculation shows that you would need to save and invest close to ₹20,000 to get to your corpus within the time frame.
 
A portfolio with a large-cap fund (ICICI Pru Nifty Next 50) and two diversified funds (Mirae Asset Emerging Bluechip and Parag Parikh Long Term Equity Fund) can form 60% of your portfolio. The remaining amount can be invested in a couple of liquid funds to provide stability to your portfolio.

 
 


 
 


 
More in National
Man With 90 Lakhs Deposit In Crisis-Hit PMC Bank Dies Hours After Prot...

PMC Bank Crisis: Sanjay Gulati, 51, went for a protest march outside a city court on Monday morning and had been under stress because of his deposit being stuck in ...

Recently posted . 3 views

Here's all you need to know about FASTags

FASTags will help in government’s plan to decongest national highways.

Recently posted . 6 views

Now get a reprint of your PAN card for just Rs 50

A PAN card is issued by the income tax department via two agencies- UTIITSL and NSDL-TIN.

Recently posted . 8 views

Man Digs Pit To Bury Daughter, Finds Baby Buried Alive In Earthen Pot

Bareilly, Uttar Pradesh: Hitesh Kumar Sirohi, the trader, rescued the girl and fed her milk using cotton. The girl is currently admitted to a private hospital.

Recently posted . 15 views

Kids Carve Out Carrom Board In Mud, Anand Mahindra Says 'India Has Zer...

By now we all know just how religiously Anand Mahindra recognises and appreciates all things jugaad on his social media page. 

Recently posted . 14 views

This may be the real reason behind Rahul's resignation

After Congress lost 2014 Lok Sabha elections, Sonia Gandhi had instituted the Antony Committee for an official post-mortem.  

Recently posted . 14 views

 
 
 

Prashnavali

Thought of the day

We humans are not Chemicals we can think before reacting.Take pause think thrice before reacting. 🙏🏻
Anonymous