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Will these mutual funds help me to create Rs 3-5 crore?

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Last Updated: Jan 29, 2020, 04.15 PM IST
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I am a moderate to aggressive investor. I am investing in the following mutual funds with an investment horizon of 20-25 years.

Nippon India Large Cap Fund: Rs 1,000
L&T Midcap Fund: Rs 1,500
SBI Small Cap Fund: Rs 4,000
Kotak Standard Multicap Fund: Rs 5,000
Axis Focused 25 Fund: Rs 2,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
Invesco India Contra Fund: Rs 1,500
NPS Contribution: Rs 13,000 per month

My goal is to create a corpus of Rs 3-5 crore. Please assess my mutual fund portfolio.
--Swapnil Kumar

Ashish Modani, Founder, SLA Financial Solutions, reponds:


Your risk-taking ability also depends on your investment horizon. Your risk appetite - aggressive to moderate - is confusing. As you want to invest for 25 years, I am assuming you are an aggressive investor.

Being an aggressive investor does not mean that you will invest in risky asset classes. It only means that your strategy should be aggressive and over a period of time, when you will face inevitable bear markets, you are able to control your emotions and not panic, which 90% of investors end up doing.

It is easy to say that I want to invest for 25 years but the most difficult part is to be disciplined, control over greed and fear for the entire 25 years.

Talking about your funds, no one can say that these schemes will be good or not for 25 years. Mutual funds don’t remain good or bad forever. The best funds will go through very bad times and bad schemes tend to become great after some time. So, the best funds right now might not be the best funds after 10 years.

However, you have a good mix of funds in your mutual fund portfolio. Focus on your asset allocation and continue investing with discipline.
(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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