Will these mutual funds help me to create 50 lakh in 15 years?

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I am 30 years old and my aim is to create Rs 50 lakh in 15 years. I have invested Rs 2,000 in SBI Focused Equity Fund, Rs 2,000 in HDFC Small Cap Fund, Rs 1,000 in Reliance Multicap Fund, Rs 2,000 in L&T Midcap Fund. I have also invested Rs 2 lakh in FD. Am I investing in the right mutual funds to get good returns? If not, which funds should I invest?
--Naren Kumar

Suresh Sadagopan, Founder, Ladder7 Financial Advisories, responds:


Your investments should be based on your risk profile, return expectations, when the goals are coming up and other factors. Investing in mid- and small-cap funds will expose you to huge volatility. You should invest in these mutual funds only if you are prepared for a roller-coaster ride. It may eventually offer good returns over over time. My suggestion to you would be to direct the money into a nifty index fund like HDFC Index Fund Nifty 50 Plan and Mirae Asset Large Cap Fund. At an expected return of 12 per cent per annum, your monthly investment of Rs 10,000 would help you to create Rs 50 lakh, not accounting for income tax, in 15 years. I am also taking into account the FD.
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