Will these mutual funds help me to retire early?

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I am 28 years old. I started investing in mutual funds two years ago. I started by investing around 10,000 per month. Now, I am investing around Rs 20,000 per month.
SBI Small Cap Fund
Reliance Small Cap Fund
Kotak Standard Multicap Fund
Franklin Build India Fund
HDFC Hybrid Equity Fund
Axis Small Cap Fund
Axis Focus 25 Fund
ICICI Prudential Banking & Financial Services Fund
L&T Business Emerging Fund

I am investing around Rs 1,500 to Rs 3,000 per month in each of these schemes. Apart from this, I invested Rs 1 lakh in pharm funds of Tata and Mirae Asset last month. I can take moderate to high risk. I am investing for an early retirement. I am hoping to not touch these funds for at least for another 15 years.

Also, started investing in stock markets by investing in stocks like ITC, BHEL, Adani Ports, Ashok Leylnd, etc for the long term. I have already invested Rs 2 lakh in stocks.
Am I heading in the right direction?
-Rahul Khanna

You have not shared your personal details with us. So, it will not be possible to offer a personalised comment. If you are saving at least 30% of your salary, you are doing right. If you have a large health insurance cover for you and emergency fund to take care of your expenses for at least six months, you are ready to start your investments. Also, if you have financial dependents, you should buy a very large life insurance cover. Buy a pure term insurance cover as it allows you to buy a large cover by paying a small premium.

  • 4.34%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • N.ATime taken to double money
  • 5.08%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 2.9 YearsTime taken to double money
Your mutual fund portfolio lacks focus. First, find out your risk profile and then invest mostly in schemes that are in line with your risk profile. Since you are starting your investment journey, try to play it safe and steady. If your risk profile is moderate, invest mostly in flexi cap schemes. If you want to take extra risk to earn higher returns, try to invest a small part of your total investments in mid cap and or small cap schemes based on the extra risk you want to take.

We typically ask regular investors to stay away from sector funds. It is always better to take exposure to sectors via diversified equity schemes. Sectors come and go out of fashion depending on the economic activities. A fund manager is better placed to take a call on them. A flexi cap scheme would have meaningful exposure to sectors that are doing well.
It is not easy to make money in the stock market, especially by investing on tips. You need to have a lot of time and knowledge to make money from direct stock investments. If you do not have the time or necessary knowledge, it is always better to hire the services of a fund manager by paying a small fee.

Try not to be adventurous in your quest to make extra returns. The extra risk need not translate into higher returns. Keep your investment strategy simple. And keep on investing in the right mutual funds through the ups and downs in the market. Always remember that investing regularly through ups and downs in the market is the only proven way to create wealth over a long period.
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