iStockI am a medium risk taker. I am planning to invest for 15 years through SIP. Total investment planned is Rs 10,000 per month.
Mirae Asset Emerging Bluechip Fund: Rs 2,500
SBI Corporate Bond Fund: Rs 2,500
Axis Small Cap Fund: Rs 5,000
I want to create a retirement corpus of RS 2 crore in 15 years. Does my scheme selection looks okay? -Ahilan Chellathurai
It seems, you are new to mutual funds. If you are not clear about the basics of investing in mutual funds, you should hire the services of a mutual fund advisor.
You have unrealistic return expectations from your mutual fund investments. You need to generate very high returns (around 25.5%) to reach your target of Rs 2 crore in 15 years. Assuming an annual return of 12%, you need to invest around Rs 39,650 per month to create a corpus of Rs 2 crore in 15 years. Most mutual fund advisors use 12% return, based on the averge long-term historical return from equity mutual funds, for the sake of calculations. Please note, the actual returns would be based on the performance of the schemes.
You have chosen a large & mid cap fund, corporate bond fund, and small cap scheme. It is not clear why you have picked a debt mutual fund scheme to reach your long-term financial goal like retirement. Also, large & mid cap funds and small cap schemes are more suited for investors with a high risk appetite. Mid and small cap stocks are highly risky and volatile. That is why these schemes are recommended to aggressive investors with a very large risk appetite and ability to tolerate risk.
Finally, please consult a mutual fund advisor before proceeding further. Gain some experience and knowledge before start investing on their own. It is not a great strategy to exposure your hard-earned money to unnecessary risk.
Mirae Asset Emerging Bluechip Fund: Rs 2,500
SBI Corporate Bond Fund: Rs 2,500
Axis Small Cap Fund: Rs 5,000
I want to create a retirement corpus of RS 2 crore in 15 years. Does my scheme selection looks okay? -Ahilan Chellathurai
It seems, you are new to mutual funds. If you are not clear about the basics of investing in mutual funds, you should hire the services of a mutual fund advisor.
You have unrealistic return expectations from your mutual fund investments. You need to generate very high returns (around 25.5%) to reach your target of Rs 2 crore in 15 years. Assuming an annual return of 12%, you need to invest around Rs 39,650 per month to create a corpus of Rs 2 crore in 15 years. Most mutual fund advisors use 12% return, based on the averge long-term historical return from equity mutual funds, for the sake of calculations. Please note, the actual returns would be based on the performance of the schemes.
You have chosen a large & mid cap fund, corporate bond fund, and small cap scheme. It is not clear why you have picked a debt mutual fund scheme to reach your long-term financial goal like retirement. Also, large & mid cap funds and small cap schemes are more suited for investors with a high risk appetite. Mid and small cap stocks are highly risky and volatile. That is why these schemes are recommended to aggressive investors with a very large risk appetite and ability to tolerate risk.
Finally, please consult a mutual fund advisor before proceeding further. Gain some experience and knowledge before start investing on their own. It is not a great strategy to exposure your hard-earned money to unnecessary risk.
(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.)
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