Best mutual funds to buy a car, house

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I am investing Rs 2,000 in ICICI Prudential Bluechip Fund through SIP for the last two years. I recently started investing Rs 1,000 each in Axis Bluechip Fund, Kotak Corporate Bond Fund and ICICI Prudential Medium Term Bond Fund. I am 24 years. I took an online quiz which helped me to realize that my risk profile is moderate high.

I have some surplus cash that I would like to invest either in global funds like PGIM global Equity opportunities or Motilal Oswal Nasdaq 100. Also, I have an inclination towards sector specific funds like technology, pharma and financials, but it is all very confusing.

Please suggest the right approach. Investment horizon of 15-20yrs. Long term goals of a car and house. Valuation can be Rs 50 lakh for the car and 2 crore for the house over 20 years.
-Shivam Gupta


You are currently investing in two large cap mutual funds, a corporate debt fund and medium duration fund. It is not clear why you have chosen debt schemes for your very long-term goals. As you might know, debt mutual funds offer modest returns. Therefore, you need to invest a large amount to create your target corpus.

  • 8.07%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 8.11 YearsTime taken to double money
  • 13.13%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.11 YearsTime taken to double money
You should seek the help of a mutual fund advisor to construct a sharply focused core portfolio. If you have moderate to high risk, you need to find out how much extra risk you want to take. Mid cap and small cap schemes are suitable for aggressive investors, as they are extremely risky and volatile. You may take a small exposure if you have the necessary risk appetite. Only a investment advisor would be able to find out whether you have the required ability and mental make up.


You are investing a modest sum at the moment. First, you should hike your investments in your core portfolio. After that you can think of diversifying into international funds. Most advisors do not recommend sector funds to small investors as these sectors are cyclical and they can be extremely risky and volatile.

Assuming an annual return of 12%, you need to invest around Rs 20,000 every month to build a corpus of Rs 2 crore in 20 years. As you can see, you will have to increase your SIP investments to reach your target. Do not chase fancy themes and sectors to make extra returns. Be disciplined and invest regularly irrespective of the market conditions to create wealth over a long period. It may sound boring, but that is the only proven method to make money. Chasing hot sectors and themes, on the other, often results in losses.

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