iStockI am 40 years old. I want to start investing in mutual funds through SIPs to create wealth over the long term (retirement corpus). My risk profile is moderate. I am looking at a time-frame of 10 to 15 years. Should I start with the funds listed below?
Axis Focused 25 Fund: Rs 2,500 per month
Invesco India Contra Fund: Rs 2,000 per month
Invesco India Mid Cap Fund: Rs 2,000 per month
Kotak Standard Multicap Fund: Rs 3,000 per month
Motilal Oswal Nasdaq 100 FOF: Rs 2,000 per month
HDFC Index Fund Nifty 50 Plan: Rs 2.000 per month
I am looking at investing Rs 25,000 per month. Please tell me how I should split the money per fund (Rs 25,000 per month). It would be great if you can let me know the projected returns that I should expect in 10 to 15 years.
- Manmohan
If you are a moderate risk-taker investing for a long period, you should invest mostly in multi cap mutual funds. You may also invest in large cap mutual funds if you want to diversify and reduce the overall risk in your mutual fund portfolio.
You have chosen a focused multi cap scheme, contrarian or value-oriented scheme, mid cap scheme, multi cap scheme, international fund, and large cap index scheme. As you can see, the two multi cap schemes (one with a concentrated portfolio and the other with a diversified portfolio), and the large cap index schemes are in line with your risk profile.
However, mid cap schemes are meant for aggressive investors with a very high risk appetite and ability to withstand volatility. They are not suitable for investors with a moderate risk appetite.
Value-oriented schemes follow value investing strategy. In other words, they look for stocks that are undervalued in the market and hold on to them to realise their full potential. It involves a lot of patience and time. If you are okay with the strategy, you may choose a value fund. Otherwise, stick to a diversified multi cap mutual fund schemes.
You can invest in international schemes if you are looking for geographical diversification.
Mutual funds do not guarantee any returns. However, you may hope to get 10-12% returns from equity mutual funds over a long period of 10-15 years.
Axis Focused 25 Fund: Rs 2,500 per month
Invesco India Contra Fund: Rs 2,000 per month
Invesco India Mid Cap Fund: Rs 2,000 per month
Kotak Standard Multicap Fund: Rs 3,000 per month
Motilal Oswal Nasdaq 100 FOF: Rs 2,000 per month
HDFC Index Fund Nifty 50 Plan: Rs 2.000 per month
I am looking at investing Rs 25,000 per month. Please tell me how I should split the money per fund (Rs 25,000 per month). It would be great if you can let me know the projected returns that I should expect in 10 to 15 years.
- Manmohan
If you are a moderate risk-taker investing for a long period, you should invest mostly in multi cap mutual funds. You may also invest in large cap mutual funds if you want to diversify and reduce the overall risk in your mutual fund portfolio.
You have chosen a focused multi cap scheme, contrarian or value-oriented scheme, mid cap scheme, multi cap scheme, international fund, and large cap index scheme. As you can see, the two multi cap schemes (one with a concentrated portfolio and the other with a diversified portfolio), and the large cap index schemes are in line with your risk profile.
However, mid cap schemes are meant for aggressive investors with a very high risk appetite and ability to withstand volatility. They are not suitable for investors with a moderate risk appetite.
Value-oriented schemes follow value investing strategy. In other words, they look for stocks that are undervalued in the market and hold on to them to realise their full potential. It involves a lot of patience and time. If you are okay with the strategy, you may choose a value fund. Otherwise, stick to a diversified multi cap mutual fund schemes.
You can invest in international schemes if you are looking for geographical diversification.
Mutual funds do not guarantee any returns. However, you may hope to get 10-12% returns from equity mutual funds over a long period of 10-15 years.
(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.)
Get Unlimited Access to The Economic Times
