The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| E-Paper
Search
+

    How many years will these mutual funds take to create Rs 3 crore?

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

    Getty Images
    I have started investing in mutual funds. I have the following monthly SIPs for 20,000 in these funds:
    Axis Long Term Equity Fund: Rs 2,000
    Aditya Birla Sun Life Tax Relief 96: Rs 2,000
    Motilal Oswal Long Term Equity Fund: Rs 1,000
    Mirae Asset Tax Saver Fund: Rs 1,000
    Axis Bluechip Fund: Rs 2,000
    Axis Midcap Fund: Rs 1,000
    Axis Small Cap Fund: 1,000
    Axis Focused 25 Fund: Rs 2,500
    Mirae Asset Emerging Bluechip Fund: Rs 2,500
    Mirae Asset Hybrid Equity Fund: Rs 1,000
    SBI Small Cap Fund: Rs 2,000
    Motilal Oswal Multicap 35 Fund: Rs 1,000
    SBI Banking & Financial Services Fund: Rs 1,000

    How many years it will take to make a corpus of Rs 3 crore? I have moderate risk appetite. I have a minimum investment horizon of 10 years.
    -Manish Kumar


    Here are a few quick observations. One, you have too many schemes in your mutual fund portfolio. You should not have more than four schemes, including ELSS funds, in your portfolio.

    Your have some large & mid cap, mid cap, and small cap schemes in your portfolio. Mid and small cap investments are not meant for moderate risk-takers. They are ideal for investors with a very high risk appetite and ability to withstand extreme volatility. We do not recommend thematic or sector funds to regular investors. We believe they should invest in a multi cap scheme to bet on themes and sectors.

    Things You should consider
    • Annualized Return
      for 3 year: 7.11%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.10 Years
    Things You should consider
    • Annualized Return
      for 3 year: 4.83%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 2.7 Years
    Ideally, a moderate equity investor should invest mostly in multi cap schemes. If the investor wants to reduce the overall risk in the portfolio, he can invest in large cap schemes.

    You have an extremely ambitious target. If you continue with your current investment and manage to earn around 12% annual returns, you would be able to create a corpus of Rs 46 lakh in 10 years, and Rs 1.98 crore in 20 years, and over Rs 3 crore in 24 years.
    (If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

    Also Read

    2 Comments on this Story

    Travel Album313 days ago
    All mutual funds are fraud. The fund managers make money and losses are managed with brokers and investors always get a Raw deal. Insurance linked mutual funds are absolute fraud and bank employees and agents haunt you to invest with false promises of performance and return. Govt. should bar banks from promoting mutual funds and insurance linked schemes and mind their own banking business to avoid retiree’s and investors getting fleeced.
    Chandru Kotian313 days ago
    This all are paid article from mutual funds, beware
    The Economic Times