Will these mutual funds help me to create a corpus for my child?

I am 42 years old. I have been investing Rs 75,000 via monthly SIPs in various mutual funds for the last one year. I am a medium risk-taker and want to continue with this investment for the next 10 years. My goal is to make the corpus of Rs 1 crore for my child’s higher education in 2033.

1. Sundaram Income Plus Appreciation Fund - Rs 25,000
2. Canara Robeco Emerging Equities Fund - Reg Plan - Gr - Rs 20,000
3. Aditya Birla Sun Life Equity Fund - Reg - Gr - Rs 20,000
4. Kotak India EQ Contra Fund - Reg - Gr - Rs 10,000

Should I make changes to my mutual fund portfolio?
--Sanjay Bhake

Since you have moderate risk appetite and a long-term investment horizon, you should be investing mostly in multicap schemes to build a college fund for your child. If you want to diversify your portfolio and reduce risk, you may also invest in largecap schemes. However, you are currently investing in a credit risk fund, large & midcap scheme, multicap scheme, and value fund.

A credit risk scheme, a debt mutual fund, is not suitable for long-term investment. Your 1/3^rd of investment is in this scheme. Large & midcap schemes also have a higher risk, as they are mandated to invest at least 35 per cent of corpus in largecap stocks and 35 per cent in midcap stocks. The midcap stocks have a higher risk.


You should ensure that your mutual funds are in line with your risk profile. If you can't do it on your own, you should seek the help of a mutual fund advisor.

Assuming an annual return of 12 per cent on your investments, you may be able to create a corpus of Rs 3.78 crore at the end of 15 years.