I have started an SIP of ₹6,000—Mirae Asset Emerging Bluechip Fund (₹1,200), SBI Small Cap Fund (₹1,200), Motilal Oswal Multicap 35 Fund (₹1,800) and Kotak Standard Multicap Fund (₹1,800). My target is creating wealth for retirement, which is 30 years from now. Kindly assess the portfolio. I am aiming to build a corpus of ₹2 crore. —Abhijit A
Planning your investments for a long-term retirement goal is a three-step process. The first step is to figure out how much you would need to save and invest regularly to reach a well-defined goal (well-defined in terms of target corpus and the number of years to get there). In your case, the target corpus is ₹2 crore and you have 30 years to get there (of course, you have to adjust for inflation to see if ₹2 crore will suffice in 30 years for a worry-free retirement). Given these numbers, a quick calculation, assuming 12% long-term returns, tells us that you need to be saving and investing ₹7,000 a month to get there. At present, you are investing ₹6,000 a month which is not far off. You would want to raise it as much as you can periodically.