Will these mutual funds help me to build Rs 90 lakh in 10 years?

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I am 26 years old. I am investing in the following mutual funds:
Axis Midcap Fund: Rs 10,000 pm
Axis Small Cap Fund: Rs 10,000 pm
Parag Parikh Long Term Equity Fund: Rs 5,000 pm
Tata India Tax Saving Fund": Rs 5,000 pm

And for security purpose:
Nippon India Gilt Securities Fund: Rs 5,000 pm
DSP Strategic Bond Fund: Rs 5,000 pm

My goal is to build somewhere around Rs 90 lakh. My risk is moderately high. Since I am 27 years old, I want to invest for 10 or 11 years.
How is my portfolio for a 10-year investment. How much average return should I expect?

-David Pegu

You are currently investing in a mid cap scheme, small cap scheme, multi cap scheme, ELSS or tax saving mutual fund, gilt scheme, and dynamic bond fund. Your equity investments are skewed towards mid and small cap schemes. These schemes are highly risky and volatile. They are suitable for aggressive investors with very high tolerance for risk and volatility. Hope you are okay with the extra risk in your portfolio.

  • 4.14%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • N.ATime taken to double money
  • 10.81%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.2 YearsTime taken to double money
It is not clear why you are investing in a gilt and dynamic bond fund to take care of a long-term goal. Debt funds are ideal to invest for less than three years. For long-term goals, equity mutual funds are more suitable - provided you have the necessary risk appetite. If your goal is to create a contingency fund, liquid or short term schemes are more suitable.

Gilt schemes are extremely sensitive to interest rate movements. They suffer the most in a rising interest rate environment.

Considering an annual return of 12% on your equity mutual fund portfolio, you will be able to create a corpus of Rs 69.7 lakh by investing Rs 30,000 every month in 10 years. Your debt portfolio might also be able to create around Rs 17.4 lakh in 10 years. We are assuming an annual return of 7% on your debt portfolio for the calculation.
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