Am I investing in the right mutual funds?

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I am a conservative investor looking to make Rs 1 crore in 7-10 years on a monthly investment of Rs 30,000. Currently, I am investing in the following schemes through SIPs:

Axis Bluechip Fund: Rs 10,000
UTI Nifty Index Fund: Rs 10,000
Mirae Asset Emerging Bluechip fund: Rs 5,000
Parag Parikh Flexi Cap Fund: Rs 2,500
Motilal Oswal Nasdaq 100 Fund of Fund: Rs 2,500

Am I investing in the right portfolio as per my risk profile, investment horizon and goal? Are these the right SIPs to invest based on my risk profile?

-Sreedeep S Nair

A conservative long-term investor is typically asked to invest mostly in large cap funds or aggressive hybrid funds. That means the first two schemes- Axis scheme and UTI scheme- are in line with your risk profile. Large & mid cap scheme, flexi cap scheme, and international scheme – your other investments- are meant for investors with a higher risk appetite.

Your definition of long term is wrong. Seven years are considered the minimum period to invest in equity funds. Assuming an annual return of around 12%, your monthly investments of around Rs 30,000 would make around Rs 69.70 lakh at the end of 10 years.

Lastly, do not assume a nice round figure like Rs 1 crore will be enough to take care of your future goals. Work with real numbers, inflation, and taxes to arrive at realistic targets.



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