Want to invest in mutual funds but don’t know how to go about it?

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Get all your mutual fund related queries answered by our expert, Harsh Roongta, independent financial advisor, on our show Mutual Fund Corner.

Q: 28-year-old Nirav Fruitwala writes us from Gujarat. I am investing Rs 1,000 in DSP BR Small Cap Regular Plan from December, 2016; Rs 1,000 in Birla Sun Life Equity Growth Fund from September, 2016; Rs 1,000 in SBI Blue Chip Regular Plan from March, 2017 and Rs 1,000 in HDFC Hybrid Equity Fund from April, 2018. Kindly advise me on my current portfolio and especially on DSP Small Cap Fund as having loss of 10 percent. Whether to stay in same fund or switch it to other fund? My goal is to create wealth of Rs 4 crore in 25 years for retirement planning. Is it achievable by these SIP?

A: Have realistic expectations from your investment. If monthly SIP of Rs 4,000 grows at 11 percent per annum in 25 years, it will be less than 1/6th the amount of your target. Incidentally, even your target of Rs 4 crore in 25 years’ time will fetch you a monthly pension of Rs 31,000 per month. In today's terms for the next 25 years after retirement. Also, if you are a do it yourself investor invest in direct plans rather than regular plans. Best of all take proper advice and then invest in direct plans. Cut your fund exposure to only 2 schemes. From your schemes, SBI Blue Chip Direct Growth (60 percent) and ABSL Equity Direct Growth Plan.

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