How much should I invest to make Rs 5 crore in 20 years?

I am currently investing through a monthly SIP of Rs 14,000 and will keep on increasing it every year by 10 per cent. My time horizon is 20 years. I have a moderate/high risk appetite. I wanted to know if I am investing in the right funds. Also, how much further should I increase my SIP if I have to reach Rs 5-6 crore-mark in 20- 23 years.

1) Aditya Birla Front Line Equity Fund - growth
2) HDFC Mid Cap Opportunities Fund - growth
3) Aditya Birla India Gen Next Fund - Growth
4) ICICI Pru Exports and Other Services Fund - growth
5) Sundaram S.M.I.L.E Fund - growth
6) Tata Balanced Fund - growth.

Should I change any funds or keep on investing?
--Rajat

To begin with, identify your financial goals, quantify them, account for inflation and calculate the target corpus to achieve each goal. Once you have the target corpus, identify the investment vehicle to achieve it. Do not opt for round numbers like a crore or two. You might find that the figure is not enough to take care of your goal. Unless, you calculate your target corpus with real numbers, it could always pose a problem in future.

For long-term goals, you can invest in equity mutual fund schemes. However, you should choose them in line with your risk profile. You claim you have a moderate to high risk appetite. But you have investments in a balanced scheme and largecap scheme. They are meant for conservative investors. Have you invested in them to diversify your portfolio? If yes, it is fine. But make sure they are just a small part of your total portfolio. Also, you must be aware that they might drag the overall returns from your mutual fund portfolio.


Investments in midcap and smallcap schemes are in line with your aggressive risk profile. However, we do not recommend investments in sector schemes, even for investors with aggressive risk appetite. Sector schemes are meant for experienced investors who can time their entry and exit in them. In our experience, regular investors would not be able to do that. However if you insist on investing them, make sure only a small part of your total portfolio is in them.