Will these mutual funds help me to create Rs 8 crore?

I am a 28-year-old salaried individual. I am currently investing Rs 12,000 in Mirae Asset Bluechip Fund, Rs 5,000 in UTI Index Fund and Rs 3,000 in HDFC Small Cap Fund and Rs 2,500 in both Aditya Birla Sun Life Tax Relief 96 and Axis Long Term Equity. A total of Rs 25,000 every year. The current worth of my portfolio is Rs 1.7 lakh. I have a moderate risk profile. I understand the inherent risk in small cap funds, but I still have the appetite to digest a Rs 3,000 SIP. My aim is to build a corpus of around Rs 8 crore in 30 years for my retirement. Is it a right path to follow?
--Sayantan Banerjee

You have named two mutual fund schemes wrongly. So, we are assuming that you are investing in Miare Asset Emerging Bluechip Fund, UTI Nifty Index Fund, HDFC Small Cap Fund, and two ELSS or tax saving schemes. Mutual fund advisors mostly recommend multi cap schemes to investors with moderate risk profile. You are currently investing in a large & mid cap scheme, large cap index scheme, small cap schemes, and ELSS mutual funds. Both large & mid cap scheme and small cap schemes are not suited for moderate investors. Both these schemes are meant for investors with a higher risk appetite as investing in mid cap and small cap stocks can be extremely risky; these stocks can also be very volatile. It is also not clear why you are investing in a large cap index fund. Index funds are meant for investors who believe that passive investing is better.

Your mutual fund portfolio lacks focus. You should try to align your portfolio in with your risk profile. If you are not clear about investing in mutual funds, you should seek the help of a mutual fund advisor. Gain enough knowledge and experience before taking charges of your investments.


Assuming an annual return of 12 per cent, you should be able to create a corpus of Rs 8 crore in 30 years if you continue to invest Rs 25,000 every month. However, do not be complacent. You should remember that a round figure like Rs 8 crore might not be enough to take care of your financial goals, inflation would make your future financial goals really big. So, it is extremely important to quantify every goal and inflate it to reach a realistic target.