What rate of interest will these mutual funds offer after seven years?

I am investing Rs 5,000 per month in each of the following schemes through SIP for the next seven years.
Invesco India Growth Opportunities Fund
Essel Multi Cap Fund
LIC MF Large & Mid Cap Fund
Mirae Asset Hybrid Equity Fund
Kindly suggest what rate of interest I will get after 7 years?
--Anchal Anand

MS Shabbir, founder and managing director of SenSage Financial Services, responds:

You have selected two large & mid cap schemes, a multi cap and aggressive hybrid scheme for long term. Essel Multi Cap Fund is a new scheme and was launched in July 2018. It is advisable to choose a fund which has a track record of a longer period. You may consider switching to Kotak Standard Multicap Fund or Parag Parikh Long Term Equity Fund.

Both Invesco India Growth Opportunities Fund and LIC MF Large & Mid Cap Fund do not find a place among top performers in the category.


Invesco India Growth Opportunities Fund is more than 10 years old, but it has not performed well during the last one year. Similarly, LIC MF Large & Mid Cap Fund is less than five years old. You may consider Mirae Asset Emerging Bluechip Fund which has been a top performer for more than five years. The Total Expense Ratio (TER) is 2 per cent lower than 2.15 per cent and 2.78 per cent TER charged by the schemes you have. The compounded savings in TER over a long period makes a significant difference in the returns. The fund has stopped taking lumpsum investments and accepts only SIP. You may also consider investing in one scheme under each category.

Mirae Asset Hybrid Equity Fund has been the top performer in the category for the last one year.

Please note that “interest” is a term used for fixed income and in case of equity mutual funds “return” is an appropriate term to be used.

ETMutualFunds.com adds: Mutual funds do not offer guaranteed returns. The return from the scheme depends solely on the performance of its investments.