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

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

Mutual funds to create Rs 2 crore in 12 years

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|
Oct 21, 2019, 01.19 PM IST
Getty Images
for retirement
I am a 34-year-old woman with a five-year-old son. I wish to create a corpus of Rs 2 crore in the next 12 years. I am willing to invest Rs 25,000 per month. I want to ask whether this is a realistic goal with the kind of investment capacity that I have? If yes, can you please advise me on a few mutual funds which can help me to achieve my goal.
--Ankita Gupta

Subir Jha, Founder, BuckSpeak, responds:

While equity mutual fund schemes can be apt tools to achieve your long-term financial goals, your target corpus of Rs 2 crore is way too ambitious. Your investment needs to generate around 23.5% annual compounded return to reach the corpus of Rs 2 crore in 12 years. I expect equity funds to deliver 12-13% per annum (not guaranteed) over the long term (with all the usual disclaimers of risk). This way your corpus can grow to Rs 80-85 lakh. So, you either need to scale down your expectations or increase your contribution.

When it comes to fund selection, you should consider seeking advice from a professional financial advisor who would help you construct a portfolio based on your risk appetite . You could choose to invest in a mix of children’s fund, a multi cap and a mid cap fund.
(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

How are Mutual Funds taxed?

Reliance Mutual Fund renamed as Nippon India Mutual Fund

The best mutual funds for SIP investments

Can these mutual funds deliver?

What are the benefits of investing in mutual funds?

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & 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