Will these mutual funds help me to build a retirement corpus?

Please suggest whether my mutual fund portfolio is good for a moderate risk profile. I am investing in these mutual funds via monthly SIPs. I am investing to create a retirement corpus. My horizon is around 20-30 years. Can invest Rs 10,000 monthly.

Axis Bluechip Fund: Rs 5,000
Motilal Oswal Mutlicap 35 Fund: Rs 1,500
SBI Magnum Multicap Fund: Rs 1,500
SBI Smallcap Fund: Rs 2,000
-Rakesh Joshi

Here are a few quick observations. One, your mutual fund portfolio is not in line with your risk profile. A moderate risk-taker is typically asked to invest mostly in multi cap mutual fund schemes. You are currently allocating 30% of your investments to a large cap scheme, 30% in multi cap scheme, and 20% in small cap schemes. Small cap schemes are clearly not in line with your risk profile. They are suitable for aggressive investors who are ready to take a lot of risk and face bouts of volatility. You should consider stopping your investment in the small cap scheme.

Ideally, you should invest most of your money in multi cap schemes. If you want to diversify and reduce the overall risk in your portfolio, you may take a small exposure to large cap schemes. However, you should remember that such a strategy would drag the overall return from your portfolio.


You should try to find how much corpus you need to lead an easy retired life and put together a plan to achieve the target corpus. Do not take a random investment amount or target corpus. You would be in for a shock on the eve of your retirement. Always include inflation and taxes while calculating your target corpus and investment amount.

For more, see: Why Rs 1 crore will not ensure a rich retired life?