Hai sir, i am yogeshwari. I want to invest 30k every month in Sip for 10 yeaes to achieve 1 crore. Kindly suggest some good mutual fund. Already i am investing in 1.uti index fund - rs.1500, 2. Quant small cap fund -rs.1500 and edelweiss large and midcap index fund - rs.1500
Ans: Hello Yogeshwari & thanks for writing to me. Assuming you are able to generate XIRR of 12%, you need to invest around Rs.45,000 ever month to create a corpus of 1 Crore in 10 years.
By investing Rs.30,000 every month, you will be able to generate the Rs.1 Crore corpus in around 13 years.
You can consider investing around 20% of your monthly investments in multi cap funds, 40% in small cap funds & 40% in mid cap funds. Investing in small & mid cap funds can be more volatile but these funds also have the ability to generate higher returns when compared to large cap funds.
After around 5 to 6 years, you can stop your SIP's in the above funds and invest in a mix of large cap funds & hybrid funds, which may generate potentially lower returns as compared to small & mid cap funds but also reduce volatility in your portfolio.
Note that the above suggestions are written assuming that you are comfortable with the volatility associated with different asset classes.