Mutual funds for long-term wealth creation

I am 34 years old. I have been investing through monthly SIPs of Rs 2,500 in Mirae Assets Tax Saver Fund - direct Growth, SBI Banking & Financial Services Fund - Direct Growth, and DSP Tax Saver Fund Direct-Growth since May 2019. I want to increase my SIP amount from Rs 2,500 to Rs 11,000. My risk profile is moderate and my time horizon is up to 10 years. Suggest me schemes for long-term wealth creation.
-Kamal Shamra

One, it is always a great idea to adopt a goal-based investment strategy. Identifying a goal, quantifying it and inflating it to get a realistic target would help you to put together an investment plan to achieve the goal.

Two, if you are a long-term investor with a moderate risk appetite, you should consider investing mostly in multi cap mutual funds. You may also consider investing a small percentage of your corpus in large cap mutual funds if you want to diversify your portfolio to reduce the overall risk.


You are currently investing in two tax saver fund and an ELSS or tax saving fund. ELSS funds are ideal for investors looking to save taxes under Section 80C of the Income Tax Act. You may continue with your investments in it you want to save taxes.

We do not recommend thematic or sector funds to regular investors. These funds are meant for sophisticated investors who want to diversify or maximise their returns by timing their entry and exit in these schemes. A regular investor should use multi cap mutual funds to take exposure to sectors and themes that are in vogue.

You may consider investing in a tax saving scheme if you want to save taxes and another multi cap scheme to take care of your long-term goals. Here are our recommended multi cap schemes: Best multi cap mutual funds to invest in 2020