How long should I invest in these funds to make Rs 2 crore?

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I am 33 years old and I just started investing in three funds through SIPs:

Parag Parikh Long Term Equity Fund: Rs 5,000

Mirae Asset Emerging Bluechip Fund: Rs 2,000

Axis Bluechip Fund: Rs 3,000

My question is can I expect at least Rs 2 crore from these funds? How long do I need to invest to get Rs 2 crore?
-Rajesh Kamaraj

You are currently investing in a multi cap scheme, large & mid cap scheme, and large cap scheme. Hope you have chosen these mutual funds after understanding their risk and reward nature of them. Multi cap schemes are ideal for moderate risk-takers, whereas large & mid cap scheme like Mirae is ideal for aggressive investors. Large cap schemes are meant for conservative equity investors.

Note, you should keep track of your investments in Parag Parikh scheme as the scheme may go through some changes because of the changes in the investment norms for multi cap schemes introduced by Sebi last week.
  • 17.01%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.12 YearsTime taken to double money
  • 17.36%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.1 YearsTime taken to double money

Assuming an annual return of 12%, you may be able to create a corpus of Rs 2 crore by investing Rs 10,000 per month for a little over 25 years. However, it is not the right strategy to meet future goals. A nice round figure like Rs 1 core or 2 crore will not be enough to meet your various long-term financial goals. The impact of inflation would make your goals expensive, and you may find that your corpus is not enough to take care of your goal. For more, read: Why Rs 1 crore will not be enough for a nice comfortable retirement

It is always better to identify your goals and the time you have to achieve them. Next, you should try to find the current value of the goal and use annual inflation to find the future value of every goal. Once you now the target corpus, you can put together an investment programme to create the target corpus.

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