Tuesday, September 23, 2008

Portfolio Advise

RITESH wrote back ::
Let me give my full portfolio to you, Please look at the profile and suggest me that how it is? Actually my goal is to generate around 11 to 12 Lac Rs after 5 to 6 year to purchase home.

1. DSP-ML India T.I.G.E.R -RP (G) (7) – Feb 2008 Lumsum-40000/-, April 2008 SIP 2000/-
2. HDFC Top 200 Fund (G) – Feb 2008 Lumsum-20000/-
3. ICICI Pru Infrastructure (G) (6) April 2008 SIP 2000/-
4. Reliance RSF - Equity – April 2008 SIP 2000/-
5. SBI Magnum Contra Fund (G) – Feb 2008 Lumsum 20000/-
6. Tata Infrastructure Fund (G) - feb 2008 Lumsum 20000/-

Looking forward for your suggestion
Ritesh Kumar


Dear Ritesh,
You should have given your portfolio with your first query itself.
Anyway, Right now, your lumpsum investment is Rs.1 lakh.
Your monthly outgo via sip is Rs.6000.
Your target amount is 12 lac in 6 years time.
Your 1 lac @ 15% returns (conservative) will get you around Rs.2,30,000. Still leaving a balance of Rs.10 lacs.
Your 6000 sip will @ 15% returns earn you around 6,80,000 still leaving a gap of nearly 3 lacs.
For you to get 10 lacs in 6 years @ 15% returns (I am being conservative), you will need to invest Rs.8819 per month. Say @ 18% returns, you will need to invest Rs.8060, which means you have to either hike your sip from 6000 per month to at least 8000 or extend your time horizon from 6 years to 7 and half years.
The choice is yours.
And also remember, your 12 lacs worth home will also have risen to more than 12 lacs due to inflation, etc. I hope you have taken that into consideration while arriving at your goal of 12 lacs.

Best of luck,
Srikanth Shankar Matrubai

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