Is it possible to make Rs 1 crore in 10 years by investing in mutual funds?
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- Zamal Hussain
First, mutual funds do not guarantee any returns. The performance of the investments made by the scheme will determine the returns you will get from the scheme. However, if you are investing in equity mutual funds, you can assume an annual return of 12 per cent to calculate your future corpus.
Assuming you are investing Rs 1.5 lakh every year and manages to earn an annual return of 12 per cent, you would be able to create a corpus of Rs 29.48 lakh at the end of 10 years.
However, you can start with whatever you can every month in equity mutual funds. You must try to increase your investments along with a rise in your salary. This will ensure that you meet your target corpus without much struggle.
A word of caution, though: do not bank on round figures like Rs 50 lakh, Rs 1 crore, and so on, to take care of your future financial goals. You need to quantify your goals (start with the current cost of goal, include inflation and taxation in your calculation) to ensure that you meet your goals without fail.
You should always choose your mutual funds based on your goals, horizon, and risk profile. Since you have not shared your risk profile with us, it is not possible to suggest any mutual fund schemes to you. Here are some pointers: if you are a conservative equity investor, you should invest mostly in large cap mutual funds. You may choose multi cap schemes if you are an investor with a moderate risk profile. Aggressive investors may choose mid cap and small cap schemes.
If you are new to mutual funds, you must seek the guidance of a seasoned mutual fund advisor. Gain enough experience and knowledge before trying to take care of your mutual fund investments yourself.