I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?

You may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.

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The choice of investment products depends on several factors, including the age, return expectations, risk appetite etc.
I want to invest Rs 1 crore in stocks and mutual funds for five years. The aim is to build a corpus of about Rs 1.75 crore by the end of five years. Please advise where to invest.
Ankur Maheshwari CEO, Equirus Wealth
replies: To build the desired corpus of Rs 1.75 crore in five years, your investment needs to grow at a compound annual growth rate (CAGR) of 12%. Over the past five years, the BSE Sensex has delivered 11.7% CAGR, while the broader BSE 500 Index has delivered 13.5% CAGR. You may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds. For large-cap allocation, you may invest Rs 40 lakh in ICICI Pru Bluechip and Reliance Large Cap. For large and mid-cap, or multi-cap allocation you may invest Rs 40 lakh in Mirae Asset India Equity and Canara Robeco Emerging Equity. Franklin India Prima Fund and HDFC Small Cap will be good options for investing the remaining Rs 20 lakh in mid- and small-cap funds.

I want to invest Rs 8 lakh for 5-10 years. Where should I invest it? Please suggest equity funds.
Adhil Shetty CEO, BankBazaar
replies: The choice of investment products depends on several factors, including the age of the investor, return expectations, cash flows and risk appetite. It would be wise to diversify your holdings by investing in both debt and equity products. For equity investment, you can consider the following mutual funds: Aditya Birla SL Frontline Equity, ICICI Prudential Bluechip and SBI Bluechip. If your horizon is around 10 years, you may consider taking marginally higher risk by investing in large- and mid-cap funds such as Mirae Asset Emerging Bluechip Fund and Canara Robeco Emerging Equities Fund. It is advisable that you first invest the lump sum in liquid funds and then route them to equity funds via systematic transfer plans. This will help reduce the impact of market volatility.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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Business News › Wealth › Invest › I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?
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