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Mutual funds to invest a lumpsum for 10 years

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Last Updated: Nov 29, 2019, 02.01 PM IST|Original: Nov 29, 2019, 02.01 PM IST
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Long term equity
I am investing in the following mutual funds via SIP:
Axis Focused 25 Fund: Rs 2,000
ICICI Prudential Bluechip Fund: Rs 1,000
Nippon India Liquid Fund: Rs 1,000
Axis Long Term Equity Fund: Rs 1,000
Mirae Asset Tax Saver Fund: Rs 1,000

I am planning to create Rs 35 lakh in 10 years. Do I need to make any modifications to my portfolio and SIP amount?

Also, I want to invest a lumpsum of Rs 60,000. I want good returns in 10 years. Please suggest some schemes.
--Salmaan Farish

Ankita Tanna Narsey, Founder, Oaktree Financial Advisors, responds:

You haven’t mentioned your age and risk profile. Also, I would like to understand the reason for starting an SIP in a liquid fund.

You have an aggressive portfolio. However, you need to increase your monthly SIP to Rs 15,000 per month to achieve your goal of Rs 35 lakh in 10 years, assuming an annual return of 12%.

I would highly recommend you to stop your SIP in the liquid fund and start a new SIP in a multi cap or mid cap fund. You can increase your SIP amount every year by 10% to get closer to your goal.

When it comes to lumpsum investment, I would suggest you do it systematically over a period of 12 months, using a systematic transfer plan (STF).

You can consider any of the following schemes or can split your investments in two different funds: Kotak Standard Multicap Fund and Axis Midcap Fund.

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