Will these mutual funds create Rs 2 crore in 15 years?

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I want to target a corpus of Rs 2 crore in the next 15 years. I am currently investing Rs 24,000 per month in the following funds:

Rs 3,000 in Axis Bluechip Fund
Rs 2,000 n Axis Multicap Fund
Rs 3,000 in SBI Focused Fund
Rs 2,000 in Axis Long Term Equity Fund
Rs 2,000 in Kotak Emerging Equity Fund
Rs 2,000 in Mirae Asset Large Cap Fund
Rs 2,000 in Canara Robeco Emerging Equities Fund
Rs 4,000 in Parag Parikh Long Term Equity Fund
Rs 2,000 in DSP Midcap Fund
Rs 2,000 in Axis Focused Fund

Please let me know if I need to change any of these funds or the strategy. What is the ratio of large cap, midcap and small cap through these investments? Do I need to change it?

-Sourav Ghosh

First, assuming an annual return of 12% on your monthly investment of Rs 24,000, you will be able to create a corpus of Rs 1.21 crore at the end of 15 years. However, this may not be the right way to go about taking care of your future financial goals. Try to identify your future goals, find out their current value, then provide for inflation to calculate a realistic target. Without including inflation in your calculations, you would struggle to fund your goals.

  • 8.12%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.7 YearsTime taken to double money
  • 8.9%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.10 YearsTime taken to double money
Your mutual fund portfolio has too many schemes. A better way would be to find out your risk profile and invest mostly in a category that is in line with your profile. For example, if you have a moderate risk profile, you should invest mostly in multi cap schemes. If you want to reduce risk by diversifying your portfolio, you may take a small exposure to large cap mutual funds.

You are currently investing in 10 schemes. That is a large number. You need only two or three schemes. You are investing in a large cap scheme, multi cap scheme, focused scheme, tax saving scheme, mid cap scheme, large cap scheme, large & mid cap scheme, multi cap scheme, mid cap scheme, and focused scheme (in the order you have stated them).

As said earlier, try to build a portfolio that is sharply focused and in line with your risk profile. Do not chase returns and add all the so-called best schemes to your portfolio. Such a strategy would make it difficult to monitor your portfolio effectively and take timely remedies.

If you are not clear about the basics of investing in mutual funds, you should seek the help of a reliable mutual fund advisor.

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