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Will these mutual funds help me to create a corpus of Rs 5 crore?

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ET Online|
Dec 10, 2019, 10.45 AM IST
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I am 35 years old. My daughter is six years old and my son is one year old. For the past one year, I have been investing Rs 40,000 per month in equity mutual funds.
L&T Midcap Fund: Rs 10,000
HDFC Mid-Cap Opportunities Fund: Rs 10,000
Mirae Asset Emerging Bluechip Fund: Rs 10,000
Axis Long Term Equity Fund: Rs 10,000

I want to build a corpus of Rs 5 crore in 10 years. Is it enough or should I increase my investments? My risk profile is moderately high. I am planning to increase my investments by 10% every year.
---Rahul Verma

Shifali Satsangee, Founder, Funds Veéda, responds:

If you are a moderate investor, you should stay away from mid cap schemes. However, you have mentioned that your risk profile is moderately high. Kindly reassess your risk appetite. You should invest in mid cap schemes only if you can stomach high volatility. Your portfolio has two mid cap schemes, a large & mid cap scheme, and a tax saver scheme.

You can start SIPs in a multi cap scheme like Kotak Standard Multicap Fund.

Do not assume how much you would need for your financial goals. Make a calculated estimate, inflated over the years, to know the exact amount.

Your goal of Rs 5 crore in 10 years is achievable only if you increase your SIP per month to Rs 2.15 lakh, assuming an annual return of 12% .

Alternatively, to reach your goal of Rs 5 crore, you can increase the time horizon to 15 years from 10 years, and increase your monthly SIP to nearly Rs 99,000, assuming an annual return of 12%.

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