Have I chosen the right mutual funds?

I would like to get an opinion about the following funds. My objective is to have a corpus of Rs 12 crore in next 20 years. I will be investing via SIP.

Axis Long Term Equity Fund (ELSS): Rs 25,000/month
SBI Small Cap Fund: Rs 20,000/month
Mirae Asset Emerging Equity Fund (Large & Mid): Rs 25,000/month
DSP Midcap Fund: Rs 15,000/month
Kotak Standard Multicap Fund: Rs 15,000/month
When I analyzed this portfolio, I found that it is heavy on Large & Mid cap (~45% & 40%) and rest in small cap.

I am making additional provision for safer options like FD (Rs 20,000/month). Plus I will have another Rs 15,000/month - investment pattern for that is TBD. My risk profile is between moderate and aggressive.My target rate of return is 13.5% over the next 20 years.
--Vijayendra Rao

Veena Malgonkar, certified financial planner, KM Wealth Solutions, responds:

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.


Congratulations on putting together a plan with a clear vision. Assuming that 13.5% average returns is achievable, you will have a corpus of over Rs 12 crores at the end of 20 years. The funds that you have chosen too are well thought out.

However, in this period of 20 years, there will be economic and market cycles. There are times when the markets are very overvalued and hence booking of some profits and re-entering the markets when inevitable correction happens. That would create some alpha on your portfolio.