How many years will these mutual funds take to create Rs 3 crore?
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Axis Long Term Equity Fund: Rs 2,000
Aditya Birla Sun Life Tax Relief 96: Rs 2,000
Motilal Oswal Long Term Equity Fund: Rs 1,000
Mirae Asset Tax Saver Fund: Rs 1,000
Axis Bluechip Fund: Rs 2,000
Axis Midcap Fund: Rs 1,000
Axis Small Cap Fund: 1,000
Axis Focused 25 Fund: Rs 2,500
Mirae Asset Emerging Bluechip Fund: Rs 2,500
Mirae Asset Hybrid Equity Fund: Rs 1,000
SBI Small Cap Fund: Rs 2,000
Motilal Oswal Multicap 35 Fund: Rs 1,000
SBI Banking & Financial Services Fund: Rs 1,000
How many years it will take to make a corpus of Rs 3 crore? I have moderate risk appetite. I have a minimum investment horizon of 10 years.
Here are a few quick observations. One, you have too many schemes in your mutual fund portfolio. You should not have more than four schemes, including ELSS funds, in your portfolio.
Your have some large & mid cap, mid cap, and small cap schemes in your portfolio. Mid and small cap investments are not meant for moderate risk-takers. They are ideal for investors with a very high risk appetite and ability to withstand extreme volatility. We do not recommend thematic or sector funds to regular investors. We believe they should invest in a multi cap scheme to bet on themes and sectors.
Ideally, a moderate equity investor should invest mostly in multi cap schemes. If the investor wants to reduce the overall risk in the portfolio, he can invest in large cap schemes.
You have an extremely ambitious target. If you continue with your current investment and manage to earn around 12% annual returns, you would be able to create a corpus of Rs 46 lakh in 10 years, and Rs 1.98 crore in 20 years, and over Rs 3 crore in 24 years.