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Will these mutual funds help me to create Rs 1 crore?

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ET Online|
Aug 22, 2019, 05.10 PM IST
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My investments in mutual funds are:

SBI Bluechip Fund: Rs 4,000
Axis Long Term Equity Fund: Rs 3,000
Aditya Birla Sun Life Tax Relief 96: Rs 2,500
Mirae Asset Tax Saver Fund: Rs 2,500
HDFC Small Cap: Rs 1,000
SBI Small Cap: Rs 1,000
Mirae Asset Emerging Bluechip Fund: Rs 2,000

Few of my investment has been running for three years. Are these investments fine to create a corpus of Rs 1 crore in 10 to 12 years. I have a moderate risk profile.
--Akash Garg

Rishabh Parakh, Founder, Money Plant Consultancy, responds:


Your monthly investment of Rs 16,000 will not be sufficient to generate a corpus of Rs 1 crore in 10-12 years. I am assuming an annual return of 14 per cent for the calculation. You also mentioned that some of your investment has been running for the last three years, but you have not mentioned the total available corpus at present. So, I will not be able to say how much you need to invest every month to create your target corpus of Rs 1 crore. But to give you an idea, you need to invest at least Rs 25,000 per month to create a corpus around Rs 94 lakh, assuming an annual return of 14 per cent. Once you are clear about how much you can save, the schemes and overall allocation can be decided. However, your existing schemes are good.

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