Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,274.20569.4
Stock Analysis, IPO, Mutual Funds, Bonds & More

Is it possible to make Rs 1 crore in 10 years by investing in mutual funds?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Aug 16, 2019, 03.31 PM IST
0Comments
Getty Images
debt mf
Is it possible to get Rs 1 crore in 10 years by investing 1.5 lakh per year in mutual funds?
- 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.
(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.)

Also Read

Small cap mutual funds

Mid cap mutual funds

Large cap mutual funds

Are debt mutual funds losing credibility?

Is it the right time to sell mutual funds?

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service