Will I be able to make Rs 5 core with these mutual funds?

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I am 30 years old. I am investing Rs 5,000 per month in each in Axis Long Term Equity Fund, Mirae Asset Emerging Bluechip Fund and Axis Bluechip Fund. My objective is to make a retirement corpus of Rs 5 crore. I want to add two more funds with additional investment of Rs 10,000 per month. Please suggest. How is a technology sector specific fund from a long term perspective?
- Ashutosh Agrawal

Rishabh Parakh, Chief Gardner, Moneyplant Consultancy, responds:

You have stated that you want to create a retirement corpus of Rs 5 crores, but you have not mentioned the time period (or when you plan to retire or when you want the money). If you want to retire at 60, your existing Rs 15,000 plus an additional Rs 10,000 SIP (Rs 25,000 SIP) for the next 30 years would generate a corpus of around Rs 8.5 crore, assuming a 12% CAGR.

  • 13.54%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.12 YearsTime taken to double money
Axis Midcap Fund-Growth ★★★★★
  • 13.47%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.5 YearsTime taken to double money
So, you would be able to achieve your target without taking too much risk and with a diversified portfolio. But in case you want to retire early, say, in the next 20 years, you can still achieve this target by increasing your SIPs by 10% every year. Your existing funds are good and the additional funds could be DSP Midcap Fund, Axis Midcap Fund, Kotak Emerging Equity Fund, SBI Focused Fund, Mirae Large Cap Fund.

And your second point about the technology sector, I would say it is driving our present and it will drive our future as well. However, any sectoral fund will always be very risky. You need to be very careful before investing in them. So, my take is go for a diversified portfolio and avoid sector funds unless you can monitor them.

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