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NEW DELHI : I am 30 years old and want to build a corpus of 30 lakh in six years. I can invest 20,000 in equity mutual funds through systematic investment plans (SIPs). Please suggest schemes.

Building a corpus of 30 lakh in six years with a monthly SIP contribution of 20,000 will require your investments to register an annualized return of 23%. While equity funds have generated stellar returns over the past one-year period, expecting such bullish market conditions to continue for years would be too optimistic. Hence, I will suggest you to assume a more realistic annualized return of 12%, which will generate a corpus of about 21 lakh in six years. You can spread your monthly contribution equally among the direct plans of any of these large-cap index funds such as Tata Index Sensex Fund or HDFC Index Sensex Fund, and flexi-cap or large- & mid-cap funds, and Parag Parikh Flexi Cap Fund or Mirae Asset Emerging Bluechip Fund, through SIPs.

You can increase your monthly SIP contributions to these funds, as and when the future increases in your income leave you with higher monthly investible surpluses. Also try to top up your equity funds with lump sum investments in a staggered manner during steep market corrections or bearish market phases as quality equities are available at attractive valuations during such market conditions. These steps can help you generate bigger corpus within your stated investment horizon.

Naveen Kukreja is the chief executive officer and co-founder of  Paisabazaar.com. To get your personal finance queries answered, please email mintmoney@livemint.com.

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