Will my mutual fund portfolio help me to create Rs 50 lakh?

I am 28 years old. I have decided to start my SIPs in the following four mutual fund schemes:

1. Axis Long Term Equity Fund (G) - Rs 2,500
2. DSP BlackRock Tax Saver Fund (G) - Rs 2,50
3. Aditya Birla Sun Life Advantage Fund (G) - Rs 1,500
4. Motilal Oswal Most Focused Multicap 35 Fund (G) - Rs 1,500

My risk profile is moderate.

My target is to create a corpus of Rs 50 lakh in 10 years.

a) Is my SIP amount good enough to perform in the long term and achieve my target? If no, what should be the SIP amount to start with and increment percentage in SIP required every year?

b. Is the portfolio or selection of funds good enough or if I need to change the funds?
--Sambit Dash

You have chosen two ELSS (or tax saving mutual fund schemes), a large and midcap scheme and a multicap scheme. As you know, ELSSs help you to save taxes of up to Rs 1.5 lakh under Section 80C in a financial year. If you are looking to save taxes by investing in ELSS, you may invest in these schemes (even one would do). Since your risk profile is moderate, you should invest mostly in mutlicap schemes. Large and midcap schemes do not match your risk profile, as these schemes are suitable for investors with a higher risk appetite.

To create a corpus of Rs 50 lakh in 10 years, you need to invest around Rs 21,500 every month for the next 10 years. We have assumed an annual return of 12 per cent. We would like to you to identify goals and put a number to them to put together an investment plan to achieve them. Choosing round figures is not the ideal way to achieve your goals. For more, read: Will Rs 1 crore be enough to take care of all your needs after 15 years?