Can I Get 12%-15% Guaranteed Returns with My 1 Crore Investment?

Ans: No investment can guarantee a 12-15% return per annum.

High returns come with high risk.

Fixed-income products offer stability but lower returns.

Equity investments can give high returns, but they are not guaranteed.

If someone promises guaranteed double-digit returns, it's a red flag. Be cautious.

Assessing Your Index Fund Investments
You have invested in three index funds. These funds track specific indices, so they cannot outperform the market.

Disadvantages of Index Funds:
They lack active management. No expert is handling your money actively.

They follow the market blindly. If the market falls, your investment falls too.

They miss strategic opportunities. A fund manager cannot remove weak stocks.

Market timing is crucial. Since they follow indices, they cannot adjust to volatility.

They do not generate alpha. Actively managed funds aim for better returns.

Your investments in ICICI Pru Nifty Auto, Nippon Nifty 50 Value 20, and UTI Nifty 200 Momentum 30 have underperformed. This is because:

Auto stocks may be in a downtrend.

Value funds perform better in different market cycles.

Momentum funds depend on short-term trends.

These funds are passive, meaning they cannot adapt to market changes.

Should You Continue or Exit?
If you want higher returns, move to actively managed funds.

If you are okay with market-average returns, stay in index funds.

Based on your goal of 12-15% return, it is better to exit these index funds and shift to:

Actively managed flexi-cap funds for diversification.

Mid-cap and small-cap funds for higher growth potential.

A mix of sectoral/thematic funds based on strong future prospects.

How to Invest Your Rs. 1 Crore?
Since you expect high returns, you need a strategic mix.

1. Equity Mutual Funds (60-70%)
Invest in actively managed funds through an MFD with CFP credentials.

Diversify across large-cap, mid-cap, and small-cap funds.

SIP + STP strategy will reduce risk and maximize gains.

2. Debt Instruments (20-30%)
Debt funds can stabilize your portfolio.

Consider short-duration debt funds for lower risk.

3. Alternative Investments (10-20%)
Some exposure to gold ETFs or international funds is good.

Avoid real estate since it lacks liquidity.

Final Insights
Avoid index funds if you want high returns.

Exit underperforming index funds and switch to actively managed funds.

Diversify your Rs. 1 crore into equity, debt, and alternative options.

Do not chase guaranteed returns. Instead, focus on risk-adjusted returns.

Choose actively managed funds through an MFD with CFP credentials to get professional guidance.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment