Will these mutual funds help me to build a corpus for my kid's education?

I am 32 years old. I want to build a corpus to fund my kid’s education. Currently, I am investing in six funds through SIP: Rs 1,500 in Axis Long Term Equity Fund, Rs 1,500 in Quant Small Cap Fund, Rs 1,500 in Mirae Asset Emerging Bluechip Fund, Rs 1,500 in PGIM India Global Equity Opportunities Fund, Rs 1,000 in ICICI Prudential Medium Term Bond Fund and Rs 1,000 in SBI Contra Fund. I am increasing the SIP amount by 1500 every year. My total investment is Rs 2.25 lakh. I am looking at a time horizon of 10-20 years and have a high risk appetite. Can you tell me if my selection of funds will help me achieve my aim or do I need to look at some other funds too? Also, which funds should I give preference for topping up?
-Krit Narayanan Yadav


First, you are investing in too many schemes. Investing a small amount in several schemes is unlikely to offer you the benefit of diversification or maximise your returns. Two, you say you have a very high risk appetite. You are ready to take risks, but can you afford to take risks? Will you be okay if you lose money? Taking too much risk will not guarantee higher returns. You should always try to balance risks and returns.


Take a few online quizzes to find out your risk profile. Once you know your risk profile, ensure that you choose a scheme that matches it. For example, if you have a moderate risk profile, you should invest in a flexi cap fund. If you have a conservative profile, invest in a large cap scheme. Also, you can invest in a tax saving scheme like Axis Long Term Equity Fund if you want to save taxes under Section 80C.

Since you are beginning to invest in mutual funds, don’t take unnecessary risk. A good flexi cap scheme will help you to build a corpus of your future Goal. You can add more schemes in future when you would start investing a large amount. If you don’t understand the basics of investing, seek the advice of a reliable mutual fund advisor.


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