Can Tata Equity PE Fund Fulfil the Goal of Daughter’s Marriage After 7 Years?

It is good that investors have started charting out their life’s goals, and are taking steps towards investment journey to reach them at an early stage. So, if you are planning for your daughter’s marriage which is seven years away, you can manage to grow your wealth in these years and invest through SIP. The Systematic Investment Plan is preferred for investment so that it will not become a burden for you and your other financial requirements, also get fulfilled. So, let’s see if Tata Equity PE Fund will fulfill your goals or not. Investing Through SIP: As you haven’t shared any detail how much amount you will require at the end, so a target amount of Rs. 10 lakh have been assumed. If you invest an amount of Rs 7,000 for the seven years on a monthly installment basis, then you may expect the annualised growth of 16% approximately in your capital. If we see this on the basis of the past performance of Tata Equity PE Fund, then in seven years, i.e., from Nov 01, 2011 to Nov 01, 2018, the total amount invested would be Rs 5,95,000. However, the worth of your investment would be Rs 10,71,550. That means the fund has the potential to provide the amount of Rs 10 Lakh in the specified tenure. You can also invest some additional amount through lumpsum mode which will help you to reach the goal much faster. Besides Rs 7,000 of investment, you can increase the amount of SIP whenever your income increases, which will also help you to reach the goal faster and you would have some extra cash which will be helpful in case of some extra expenses. Risk Associated with Tata Equity PE Fund (G) If you are starting investment in the fund, you must know that it is a high risk scheme and you may see the portfolio red in the first few years. But don’t get panicked after seeing that because Tata Equity PE Fund- Growth Plan has the capability to provide high returns in the long run. Before investing in the fund, you should consult your financial advisor too and see that if it fits in your risk profile or not. At the same time, you must know that it invests across the market cap, providing good exposure to mid and small-caps as well, it will offer you stable as well as growth return. Its portfolio is also a bit more aggressive as compared to other funds in the category; therefore, you must have an appetite of tolerating high-risk on your principal amount. rnOther than this, the fund is holding only shares of only 37 companies in its portfolio, which it picks on the basis of value style of investment, which is again an aggressive method of investing. This again makes the fund aggressive as compared to other funds of the category. As you are planning for your daughter’s marriage and have an investment horizon of 7 years, we wish that the amount you are determining to generate will get you from investing in Tata Equity P/E Fund- Regular Plan. Besides this, if you feel any confusion, you should contact your financial advisors who will suggest you the best mutual fund investment plans. Happy investing!