I have SIPs of Rs.3, 000 in L&T Equity, HDFC Top 200, ICICI Pru Dynamic and Reliance Growth. I wish to build a corpus of Rs.1 crore in the next 12 years. Am I on track? - S Kalyanaraman, Mumbai

Your fund selection is aggressive, considering the kind of portfolio the combined four funds present. However, the selection could have been better and aligned with your goal of building a corpus of Rs.1 crore in the next 12 years. We suggest you pick funds from our OLM Elite list published every quarter, which has handpicked selection of funds that suit different investor profiles. Your Rs.12, 000 monthly SIP will need to earn nearly 25 per cent returns to help you achieve your goal, which is an unrealistic expectation. In contrast, the long-term average returns of the BSE Sensex hover around 16 per cent. Assuming, over the next 12 years, your investments earn a 15 per cent return, you will need to increase your SIP contribution to Rs.25, 000 to achieve your goal. At the same time, do track the performance of the funds.

olmdesk@outlookindia.com