Will these mutual funds help me to create Rs 8-10 crore in 20 years?
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IDBI Midcap Fund: Rs 1,000 per month
Aditya Birla Sun Life Equity Fund: Rs 1,000 per month
Kotak Standard Multicap Fund: Rs 3,000 per month
Mirae Asset Emerging Bluechip Fund: Rs 4,000 per month
ICICI Prudential Bluechip Fund: Rs 3,000 per month
HDFC Small Cap Fund: Rs 2,000 per month
I am new to mutual funds. My goal is to create a corpus of Rs 8-10 crore in 20 years. My risk profile is moderately high or aggressive. Are these schemes good to invest?
--Kaushal Kishor Nagar
Subir Jha, Founder, BuckSpeak, responds:
As you are new to mutual funds, your risk profile would be considered low. However, your longer time horizon allows you to take a little extra risk. You should begin with a moderate portfolio and perhaps become more aggressive as you gain experience. I don’t see any major problem with the funds you have chosen. However, I wouldn’t advise you to invest in six schemes in your initial investing years. You should restrict yourself to three schemes and keep an option of adding another one or two schemes down the road. Since this is going to be your first experience of investing in equity mutual funds, you should begin with a moderate portfolio of an aggressive hybrid, large & mid cap, and mid cap fund in equal proportion.
You may consider to invest in the following funds (with all the usual disclaimers of risk):
DSP Equity & Bond Fund /HDFC Hybrid Equity Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
DSP Midcap Fund/Kotak Emerging Equity Scheme: Rs 5,000
To create Rs 8-10 crore in 20 years, you would need to invest significantly higher amount every month.