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Will my mutual funds offer me 14% returns annually?

for retirement
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.
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