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How much corpus will these mutual funds help me to create in 15 years?

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ET Online|
Jan 13, 2020, 02.45 PM IST
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for retirement
I am 34 years old. I have been investing in the following mutual funds since mid 2018:
Kotak Standard Multicap Fund: Rs 5,000 per month
Mirae Asset Emerging Bluechip Fund: Rs 5,000 per month

I have also made lumpsum investments in the following mutual funds:
BNP Paribas India Consumption Fund: Rs 10,000
Mirae Asset Midcap Fund: Rs 10,000

I am planning to start SIPs in the following funds:
Axis Bluechip Fund: Rs 2,000
Motilal Oswal Multicap 35 Fund: Rs 2,000
Mirae Asset Midcap Fund: Rs 3,000
BNP Paribas India Consumption Fund: Rs 3,000

My investment horizon is 15 years. Is my portfolio good for high returns? My risk profile is high. How much corpus can I expect after 15 years?
--Rajiv Gowda

Subir Jha, Founder, Buckspeak, responds:


You are investing in good mutual fund schemes. For the new schemes, I would suggest you to stick to two funds: Axis Bluechip Fund (large cap) and DSP Midcap Fund (mid cap). I am not suggesting BNP Paribas India Consumption and Mirae Asset Midcap because they are relatively new. Instead of Mirae Asset Midcap Fund, you may invest in DSP Midcap Fund, which has an excellent long-term track record. The fund has seen various market cycles and stood the test of time.

I also didn’t opt for Motilal Oswal Multicap 35 Fund because you are already investing in a multi cap fund - Kotak Standard Multicap.

In short, you will have four SIPs of Rs 5,000 each in the following funds:
Mirae Asset Emerging Bluechip Fund
Kotak Standard Multicap Fund
Axis Bluechip Fund
DSP Midcap Fund

If you invest Rs 20,000 per month for 15 years, you would be able to create a corpus of approximately Rs 1 crore, assuming an annual return of 12%.

Please remember that the usual disclaimer of risk in equity investments apply to this assumption. There are no guaranteed returns in the equity markets. It is based on historical records. Over a longer investment horizon (more than 7-8 years) equity investments can beat inflation. Also, remember to increase your SIP with every increase in your income. It would make a significant difference.

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