Will these mutual funds help me to create Rs 1.5 crore?

I have a target of Rs 1.5 crore in 10 years. I plan to invest in UTI Flexicap Fund (30%), Canara Robeco Flexi Cap Fund (30%), Axis Blue Chip Fund (30%) and Tata Quant Fund (10%). Could you please suggest whether this selection is fine or is it overdiversified? How long should I continue to invest in these equity schemes and at what time should I start switching and in what proportion to the debt funds to be able to withdraw after ten years? What should be my monthly SIP amount to achieve the target? I am a moderate investor.

-Arjun Khanna

Assuming an annual return of around 12%, you need to invest around Rs 64,560 every month to achieve Rs 1.5 crore in 10 years. If the monthly investment is too much for you, you can postpone your goal. Start with whatever you have and add more money every year when you get your annual salary hikes. You can also try to cut down your wasteful expenses to increase your savings and investments.

We usually tell moderate investors with a long investment horizon to invest mostly in flexi cap funds. If they want to reduce risk, they can also invest in large cap funds.


Best flexi cap funds to invest

Best large cap funds to invest

You should ideally transfer your corpus to a safer avenue at least two years before your goal. This is to ensure that sudden volatility in the stock market doesn’t upset your plans. You can also move it to a safer avenue once you reach your target.