Should I invest via SIP, directly in mutual funds?

I am 23 years old. I have a high risk appetite and a long investment horizon. I want to make Rs 10 crore in the next 20-25 years. I plan to retire by the age of 45. I can invest up to Rs 4 lakh a year directly in mutual fund schemes.

Should I invest via an SIP and directly in mutual funds?

I am considering the following schemes:

L&T Midcap Fund (G)
Kotak Emerging Equity Fund (G)
L&T India Large Cap Fund (G)
Sundaram Select Micro Cap - Series V - Direct (G)
Sundaram Select Micro Cap -Series V - Regular (G)
HDFC Small Cap Fund - Direct (G)
HDFC Small Cap Fund - Regular (G)
Reliance Small Cap Fund - Direct (G)
DSP BlackRock Midcap Fund - Direct (G)

Which of these mutual fund schemes are suitable for me?

-- Saurabh S

Shweta Jain, founder and CEO, Investography responds:

Since you have a long investment horizon and an aggressive risk appetite, you may invest in these mutual fund schemes:

L&T Midcap Fund (G)
Kotak Emerging Equity Fund (G)
HDFC Small Cap Fund (G)

Investing every month via an SIP is a good option. But if you have a lumpsum, you can invest in a liquid fund and do an STP in an equity scheme.

To create a corpus of Rs 10 crore in 25 years, assuming an annual return of 15 per cent, you need to invest Rs 31,000 per month. However, you need to evaluate if Rs 10 crore would be enough to last your entire life. You need to consider inflation, life expectancy, and your lifestyle to figure out if Rs 10 crore would be enough to take care of your retired life.