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    Will my mutual funds offer me 14% returns annually?

    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 invested Rs 2 lakh in Nippon India Equity Hybrid Fund, Rs 1 lakh in L&T Tax Advantage Fund, Rs 35,000 in Nippon India Large Cap Fund, and Rs 50,000 in L&T Emerging Businesses Fund. I have monthly SIPs in Nippon India Small Cap Fund (Rs 2,000) and L&T Midcap Fund (Rs 4,000). I have been investing in these schemes for the last two years. Can I get 12 to 14% annual returns if I stay invested for 5 to 7 years?
    --Ujjwal Tiwari

    Shweta Jain, Founder, Investography, responds:


    I would ask you to increase your investment horizon or switch to hybrid mutual funds. You should have a minimum investment horizon of five to seven years to invest in equity mutual funds. Also, a year before the goal, you should switch to short term debt funds to ensure the money is safe and available to you for your goal.

    Targeting 12 to 14% returns after five years is not realistic. I would ask you to calculate the amount required to achieve your goals and invest to achieve 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.)

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    1 Comment on this Story

    Bhaskar V K324 days ago
    I invested in Franklin Blue chip and BNP Praibas Midcap two years ago. I do not see any growth but it''s going loss by -4.13%. Is it good to continue the same?
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