Will these mutual funds help me to create a corpus of Rs 2.5 crore?

I am investing in the following funds via SIP.

1) Mirae Asset Emerging Bluechip fund (g)- Rs 2,000
2) Franklin India Equity (g)- Rs 2,000
3) SBI Focussed Equity (g) - Rs 2,000
4) Axis Blue Chip Fund(g)- Rs 2,000
5) Reliance Income Fund (g)- Rs 1,000
6) IDBI Equity Advantage Fund (g)- Rs 5,000

Along with this I am investing Rs 10,500 monthly in NPS in SBI Pension Funds Scheme. I am investing in these schemes from past one year. Are my chosen funds chosen okay, if not, please let me know the changes required. I want to know whether with these funds and the amounts invested would help me to generate a corpus of Rs 2.5 crore in 20 years and additional 4 crore in 30 years. If not , then by how much I have to increase my SIPs?
--Rushabh Lalan
Veena Malgonkar, certified financial planner, KM Wealth Solutions, responds:

Congratulations on starting your investment programme early. Your SIP amount is Rs 14,000 per month. The only suggestion that I could make is to add a mid cap/small cap fund in the mix. Although it would be volatile over a long period of time it would give you higher returns.

Assuming 14 per cent average returns you would be looking at achieving Rs 1.84 crore in 20 years with the SIP amount of Rs 14,000 per month. Adding the NPS amount you will definitely achieve your target of Rs 2.5 crore. This would amount to Rs 7.6 crores in an additional 10 years at the same rate of return.


However on this journey you would go through periods of time where there is a strong bull run and valuations become very expensive (2004 to 2007 end). During this period do book out some profits and then you can re-enter when the inevitable correction happens.