Can I make a corpus of Rs 1 crore in 20 years?

I am investing Rs 1,000 each in Reliance Tax Saver Fund, DSP BlackRock Tax Saver Fund and Birla Sun Life Tax Relief 96. I started my investments a month ago. Are these funds good to make a corpus of Rs 1 crore in 20 years?
-- Umang Garg

One, you are investing in too many tax-saving schemes. Limit the number of schemes to two. Over-diversification within a category often results in overlapping of portfolios of schemes, defeating the entire purpose of diversification. If your investments manage to offer around 12 per cent per annum, you will succeed in creating a corpus of around Rs 39.96 lakh by investing Rs 4,000 per month for the next 20 years. You will have to invest around Rs 10,000 per month for the next 20 years to make a corpus of Rs 1 crore. Please note that we are assuming that the investments would make 12 per cent per annum for calculation.


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