--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.