What kind of returns can I expect from these equity mutual funds?

I have been investing in the following mutual funds via SIPs for the last 5 Years. My intention is to save tax and also to capitalize investments by continuing for 15-20 years or more:

• Axis Long Term Equity Direct Plan: Rs 45,000
• DSP Tax Saver Direct Plan: Rs 72,000
• Nippon India Small Cap Fund: Rs 19,000
• Mirae Asset Tax Saver Fund Direct: Rs 32,000
• Motilal Oswal Long Term Equity Fund: Rs 30,000
• Tata India Tax Savings Fund Direct: Rs 30,000
• Invesco India Tax Plan Direct: Rs 10,000
• Motilal Oswal S&P 500 Index Fund: Rs 8,000

SIPs stopped:

• Nippon India Tax Saver (ELSS) Fund (IDCW Payout): Rs 99,000
• SBI Long Term Equity Fund: Rs 34,000
• SBI Long Term Equity Fund (-IDCW): Rs 41,000

Additionally, I intend to start SIP of an additional Rs 5-6,000 in equities from January.

What sort of return may I expect with my current portfolio? I am 35 years and a salaried person.

Is there any other equities fund that you would like to suggest for SIP and also if you could suggest if I can stop or consolidate any of the existing ELSS funds as I have already utilized my 80C bucket?

-Sagar Sadbhaiya

First, you are investing in too many tax-saving funds. You need one or two funds. More funds do not help you to maximise your returns. There may be portfolio overlap.

If you are not clear about the basics of investing in mutual funds, hire an advisor. Do not experiment with your money. You will lose your valuable time - time is an asset that will help you to maximise your wealth over a long period of time.


We always ask our readers to choose their equity investments based on their risk profile and investment horizon. If an investor wants to invest for seven years and has a conservative risk profile, he can invest in large cap mutual funds. If the investor has a moderate risk profile, he can invest in flexi cap funds.

We assume that equity mutual funds may offer you around 12% annual returns over a long period. However, this is just an assumption based on historical returns. Indian stocks would offer lower returns as the market becomes more efficient.