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I am 30, I have been investing ₹30,000 through SIPs over the last one year. I put in ₹10,000 in SBI Magnum Midcap, ₹10,000 in Birla Sun Life Top 100, ₹5,000 in ICICI Pru value Discovery and ₹5,000 in Franklin India High Growth Companies. Is the fund selection proper to have a corpus of ₹75 lakh after 10 years? I am planning to start an RD for ₹10,000 for any kind of contingency.

Arnab Chakraborty For a ₹75 lakh corpus after 10 years at an annual return of 12 per cent, you need to make a monthly investment of ₹32,280. You are more or less in line. But you can probably put in more per month as and when your investible surplus increases. While 10 years is not a short time, it is not too long either. Hence, closer to the goal, book profits and move to safer debt instruments to preserve your gains.

As far as your funds go, diversify your portfolio a little more for the ₹30,000 you are investing. Put in ₹5,000 each in Birla Sun Life Top 100, Mirae Asset India Opportunities (large-cap oriented funds), SBI Magnum Midcap and HDFC Midcap Opportunities (mid-cap funds). For the remaining ₹10,000, continue with ICICI Pru Value Discovery and Franklin High Growth. Regarding the RD investment, it is good to diversify into debt instruments. But don’t lock into a long-term RD. Choose a tenure of six months to a year at the most. That way, you can reinvest at a probably higher rate later on.

Send your queries to mf@thehindu.co.in

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