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    Will these mutual funds help me to create Rs 1 crore in 10 years?

    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 would like to build a corpus of Rs 1 crore in 10 years. I have a moderate risk profile. I am new to mutual funds. I have started investing in May 2019 in L&T Midcap Fund (Rs 5,000) and L&T Emerging Businesses Fund (Rs 5,000). I am planning to start two SIPs of Rs 5,000 each in Mirae Asset Large Cap Fund and SBI Magnum Medium Duration Fund. Will these mutual funds help me to achieve my goal?
    --Nishath Gopal

    Puneet Oberoi, Founder, Excellent Investment Advisors, responds:


    You are investing Rs 20,000 per month in mutual funds, out of which Rs 15,000 is in equity and Rs 5,000 in a debt scheme.

    With your equity investments of Rs 15,000, you would be able to build a corpus of Rs 34.5 lakh after 10 years, assuming an annual return of 12%.

    Things You should consider
    • Annualized Return
      for 3 year: 8.05%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.7 Years
    Things You should consider
    • Annualized Return
      for 3 year: 9.54%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 8.7 Years
    Your investments of Rs 5,000 in debt mutual funds will help you to make Rs 9 lakh in 10 years, assuming an annual return of 8%.

    That is a total corpus of around Rs 43.5 lakh.

    To create the additional Rs 57 lakh, you need to increase your monthly SIP amount to at least Rs 40,000 in equity mutual funds to achieve your goal of Rs 1 crore in 10 years .
    (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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