If you are new to mutual funds, you need to know that there is no such thing as “best mutual funds". You will need consistent funds that suit your requirement. Since we do not know you time-frame, we will assume that you will not be worried if you lose money in less than five years. If you are ready for this, consider 50% in Parag Parikh Long Term Equity Fund and 50% in SBI Short Term Debt Fund to have a diversified, yet well-balanced compact portfolio.
I’m 35 years old. Currently, I am investing ₹40,000 every month in the following funds...
I want to accumulate ₹2 crore in another 15 years. I want to know whether it is achievable with the above portfolio.
—Name withheld on request
You will be able to reach your goal if your return (IRR) is 12%. Although your portfolio is quite aggressive, there is always a high risk that such aggression can hurt more than build wealth. So, my suggestion would be that you diversify your portfolio more by reducing exposure to mid and small caps. You can use one of the Axis mid or small cap fund. Not both. Instead, shift to Parag Parikh Long Term Equity Fund.
Similarly, bring some value or contra fund like Invesco India Contra to provide some style diversification. You can do this by cutting back on SIPs in Mirae Asset Emerging Bluechip Fund to half.
At a 10% return expectation from such a portfolio (more realistic for the long term), you will need around ₹50,000 per month of SIP. Try to increase your savings gradually.
We do not know if you have debt investments outside. If not, please ensure that you hold some debt even if through PPF or EPF.
Srikanth Meenakshi is founder of Prime Investor. Queries at firstname.lastname@example.org
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