Can these 5 mutual funds help you achieve Rs 1 crore in a decade? Here’s what an expert says

Reaching a corpus of Rs 1 crore through mutual funds is a common long-term goal for many investors, but how realistic is it with a Rs 20,000 monthly SIP and a 10% annual step-up?

In a recent query, Ravi Kumar, an investor and viewer of The Money Show on ET Now, wants to accumulate in a decade.

Also Read | Is diversified SIP + NPS portfolio enough to build Rs 15 crore? Here’s what advisors say


He shared his diversified portfolio which includes a flexicap, multicap, midcap, smallcap and balanced advantage funds—and wanted to know whether his current strategy can help him meet this target in 10 years.

His mutual fund portfolio includes HDFC Multicap, ICICI Flexicap, SBI Balanced Advantage, Motilal Oswal Smallcap, and JioBlackRock Midcap Nifty 150 Index Fund. His primary goal is to accumulate Rs 1 crore over the next 10 years.

Advisor’s View: A well-structured and balanced portfolio

According to Col. Sanjeev Govila (Retd) Hum Fauji Initiatives, the portfolio is already well-balanced and thoughtfully constructed. It covers key segments of the equity market—multicap, flexicap, midcap, smallcap, and even a balanced advantage fund, ensuring stability and growth potential.

Fund wise review:

• ICICI Flexicap Fund: Strong recent performance
  
• HDFC Multicap Fund: Robust three-year returns
  
  
• JioBlackRock Midcap Nifty 150 Index Fund: A newly launched passive fund expected to perform in line with the benchmark
  
• Motilal Oswal Smallcap: Recent one-year returns have been pretty good in spite of the market downturn
  
• SBI Balanced Advantage: A steady performer, adding stability to the equity portion of the portfolio.
  

Govila adds that the SIP structure is disciplined, diversified, and tilted toward flexicap and midcap categories.

Also Read | Can Rs 30,000 SIP deliver Rs 3 crore in 15 years? Expert shares roadmap

Will Rs 20,000 SIP reach Rs 1 crore in 10 years?

Assuming a 12% CAGR and a 10% annual step-up, the projected corpus at the end of 10 years would be around Rs 65 lakh—significantly short of the Rs 1 crore target.

The expert explains that if Ravi Kumar is determined to hit the Rs 1 crore mark within a decade, he will need to increase his SIP amount to Rs 30,000 per month, following the same 10% step-up structure.

The investor has already taken important steps—a diversified portfolio, disciplined SIPs, and an understanding of the step-up approach. With a slight increase in monthly investment, Ravi Kumar can comfortably reach his financial goal of Rs 1 crore within the desired timeline.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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