12,224.55-127.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

How much returns will these mutual funds generate in 12 years?

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

ET Online|
Nov 29, 2019, 10.40 AM IST
0Comments
Getty Images
generate money
I am investing in the following mutual funds:
Axis Bluechip Fund: Rs 4,000
Mirae Asset Emerging Bluechip Fund: Rs 10,000
Motilal Oswal Multicap 35 Fund: Rs 4,000
Axis Focused 25 Fund: Rs 4,000
Motilal Oswal Long Term Equity Fund: Rs 5,000

Is my portfolio okay, considering that I have an aggressive risk profile and long-term capital generation? How much corpus will I generate in another 12 years (I have a corpus of 21 lakh as of now).

Also, help me to consolidate my investments in these funds:
DSP Small Cap Fund: Rs 2,00,000
Edelweiss Mid Cap Fund: Rs 2,00,000

I am planning to invest the amount from these two funds in Kotak Emerging Equity Fund and also start an SIP of Rs 3,000 in the scheme. Please help.
--Vivek Sharma

Raghvendra Nath, Managing Director, Ladderup Wealth Management, responds:


We believe that you have largely focused strategy in the large cap space. Since your risk profile is aggressive, you can move some of your investments into the mid cap space. The valuations in this space have become relatively reasonable, compared to the large cap space.

Taking into account your SIP of Rs 27,000 per month and assuming an implied rate of return of 12%, you would have a corpus of around Rs 96 lakh at the end of 12 years, adding to your original investments your total portfolio will be worth Rs 1.78 crore.

The two funds you mentioned haven’t been able to manage the downside risk well. You can switch the money from them to Kotak Emerging Equity Fund. The scheme has done really well in the last one year to counter the downward movements in the mid cap and small cap space.

Also Read

Why are value mutual funds underperforming?

Is my mutual fund portfolio diversified?

NIPPON INDIA MUTUAL FUND ETF

Is my mutual fund portfolio diversified?

AN INSIGHT TO MUTUAL FUNDS

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service