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    When will I be able to make Rs 3 crore with these mutual fund SIPs?

    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.

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    I have monthly SIPs of Rs 20,000 in the following mutual 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: Rs 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 will it take to make a corpus of Rs 3 crore? I am investing for a long term (minimum 10 years), and I am a moderate investor.
    --Manish Kumar


    One, assuming an annual return of 12 per cent, you can create a corpus of Rs 3 core at the end of a little over 23 years by investing Rs 20,000 every month. You may be able to create your target corpus early if you increase your monthly investment in line with your salary hikes.

    Two, multi cap mutual funds are recommended to moderate equity investors. They are also asked to invest in large cap mutual funds if they want to diversify and reduce the overall risk in the portfolio. You are currently investing in too many schemes. An average investor needs only three to four mutual fund schemes, including tax saving schemes or ELSSs, in his portfolio. Also, large & mid cap, mid cap, and small cap schemes are not meant for moderate investors. These schemes are meant for aggressive investors with a higher risk appetite and ability to withstand high volatility.

    Things You should consider
    • Annualized Return
      for 3 year: 5.19%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: N.A
    Things You should consider
    • Annualized Return
      for 3 year: 6.78%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.6 Years
    We do not recommend thematic/sector funds to retail investors. We believe that regular investors are better off with multi cap mutual funds with a diversified portfolio. If a theme or sector is doing well, a good multi cap mutual funds would have some meaningful exposure to it.
    (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.)

    1 Comment on this Story

    Manishkumar Jha302 days ago
    Thanks for the response! As you have suggested to add multi cap funds in my portfolio, should I stop SIP in SBI banking and financial fund and start SIP in Kotak standard Multicap Fund? Also should I start SIP in SBI focused equity fund and stop SIP in Aditya Birla SL long term equity fund (ELSS)?
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