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MF investments need monitoring

How can I accumulate Rs 1.5 crore by 2020?

business Updated: Oct 14, 2011 23:19 IST


I am 42-year old and earn Rs 90,000 per month. I have two daughters aged 12 and 6 years. I have a house and car but no loan. I have SIPs in Franklin India Prima fund (Rs 1,500 from the last five years), Birla Sun Life Top 100 (Rs 2,000, five years), Franklin Prima Plus (Rs 2,000, five years), Reliance Diversified Power sector fund (Rs 2,000, three years), DSP Top 100 equity (Rs 3,000, two years), Reliance Equity Opportunity (Rs 4,000, six months), DSP Small and Midcap (Rs 5,000, six months), Reliance Gold (Rs 2,000, three months). I have funds worth around Rs 6 lakh. I have a recurring deposit of Rs 6,000 since two years. I have two PPF accounts. I contribute Rs 10,000 in them and have FDs of Rs 6 lakh. I have been paying Rs 25,000 for three Ulips. I have traditional plans and a floater health plan. How can I accumulate Rs 1.5 crore by 2020? — Aranva

You have started investing with a long-term perspective which is good. However, you haven’t been keeping track of the performance of the schemes. Out of the eight schemes you have SIPs in, three are underperformers but were doing well when you started investing. These are Franklin Prima, Birla Sun Life Top 100 and Reliance Diversified Power.

Any investment needs active monitoring; the idea is to see their quarterly performance. In case of underperformance, ascertain the reason. If the scheme continues its under-performance for a few quarters compared with its peers and the benchmark, you should consider changing the investment.

There is no reason why you will be not able to reach the magical number of `1.50 crore in the next 9-10 years. You need to make sure you are consistent and are aware of how your schemes are doing.

The views expressed are of Surya Bhatia, certified financial planner & principal consultant, Asset Managers