Can I invest in Axis Bluechip Fund to make Rs 25 lakh?

If I invest Rs 5,000 per month in Axis Bluechip Fund (direct, growth) for six years, will I be able to generate Rs 20-25 lakh.
-Lukesh Bhaaratiya

Axis Bluechip Fund is a large cap mutual fund. If you are a conservative equity investor and looking to invest for five to seven years, you may consider investing in large cap schemes like Axis Bluechip Fund. Assuming an annual return of 12%, you may be able to create a corpus of Rs 5.28 lakh by investing Rs 5,000 at the end of six years. Note, mutual funds do not guarantee any returns and the real returns depend on the performance of the investments made by the scheme.

You have unrealistic return expectations. Do not chase returns and get into schemes that are giving higher returns. It is one of the most common mistakes committed by most investors.


List your various financial goals, both short-term and long-term ones. Put a number to every goal, provide for annual inflation to calculate a realistic target corpus to achieve those goals. Once you know the target, you can find out how much you need to invest every month to achieve it (you may use Excel formula PMT). As a rule, stick to debt mutual funds to take care of your short term goals. For long-term goals, invest in equity mutual fund scheme that matches your risk profile.