How can I make Rs 10 lakh in 8 years?

I am 25 years old and I have a moderate risk profile. I want to invest Rs 5,000 per month through SIPs. I will increase this investment by 10 per cent annually. My goal is to accumulate Rs 10 lakh in the next eight years. Currently, I am investing Rs 2,000 in HDFC Balanced Fund and Rs 1,000 in SBI Magnum Multicap Fund, SBI Bluechip Fund and HDFC Mid-Cap Opportunities Fund in regular, growth option. Should I continue with these schemes?
-- Onkar Bhanji
Dinesh Rohira, Founder & CEO, 5nance.com, responds:

So far, you have invested in mutual fund schemes that have been performing consistently in the last few years.

Coming to your plan to invest an additional Rs 5,000 through SIPs, allocate Rs 3,000 to HDFC Mid-Cap Opportunities Fund and Rs 2,000 to SBI Magnum Multicap Fund. Both these schemes have consistently given a commendable performance in the last few years.


However, your current portfolio is concentrated in two fund houses. I would recommend you to diversify your portfolio with investing in some schemes that are from different fund houses.

Since, you have a longer investment horizon, eight years, you can also add smallcap funds to your portfolio. These schemes will give you higher returns over a long period.