Will these mutual funds help me to make Rs 50 lakh in 10 years? (2024)

SECTIONS

Will these mutual funds help me to make Rs 50 lakh in 10 years?

ET OnlineLast Updated: Oct 28, 2022, 11:52:43 AM IST

Synopsis

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

Will these mutual funds help me to make Rs 50 lakh in 10 years? (1)

I am investing Rs 6,000 every month through SIPs. I am planning to invest for 10 years and want to get the maximum returns. I hope to create a corpus of Rs 50 lakh. I am investing in the following schemes:
Axis Bluechip Fund: Rs 1,000
Axis Growth Opportunity Fund: Rs 2,500
Axis Mid Cap Fund: Rs 1,500
Axis Small Cap Fund: Rs 1,000

I have been investing since March 2022. My risk appetite is aggressive.
—Sonic Somanna Pullera

We typically ask long-term investors to choose their equity mutual funds based on their investment horizons and risk profile. For example, we ask investors who want to create wealth without too much volatility and risk to invest in large cap mutual funds. If the investor is ready to take a little more risk, he can invest in flexi cap funds. Investing a small amount in too many schemes won’t help you to diversify meaningfully or maximize returns. It seems, you are not clear about the basics and chose some schemes from a fund house. If you don’t know much about investing in mutual funds, seek the help of a mutual fund advisor.

Assuming an annual return of 13%, you need to invest around Rs 21,500 every month to create Rs 50 lakh in 10 years. It seems, you have unrealistic expectations from your mutual fund investments. Please don't treat your mutual funds like a lottery. You can create wealth over a long period if you invest regularly over a long period in a disciplined manner. However, if you chase returns and take unnecessary risk, you may lose money.

Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations.View Details»

Connect with Experts - Wealth creation made easy

(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

Experience Your Economic Times Newspaper, The Digital Way!

Friday, 15 Dec, 2023

Read Complete ePaper»

Digital View
Print View
Wealth Edition

Sensex Powells Past 70K
Party on Dalal Street after Fed signals three rate cuts in 2024; Nifty closes above 21,000 for the first time; both benchmarks set to achieve or surpass 2024 targets
India Inc’s Capex Cycle may Move into Top Gear
India Inc’s appetite to spend on capital projects is high despite some concerns around elevated geopolitical tensions impacting demand in the coming months.
Lodha to Continue as Chairman of MP Birla Group: Court
A division bench of the Calcutta High Court on Thursday unanimously ruled in favour of Harsh Vardhan Lodha continuing as chairman of the $1.9 billion (₹16,000 crore) MP Birla Group, reversing a three-year-old judgment of a single judge of the court.

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

To read full story, subscribe to ET Prime

Get Unlimited Access to The Economic Times

₹34 per week

Billed annually at ~~₹2499~~ ₹1749

Already a Member? Sign In now

Super Saver Sale - Flat 30% Off

On ET Prime Membership

Claim Offer »

Already a Member? Sign In now

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Rs 49 for 1st month

Then Rs. 1,749 per year

SUBSCRIBE NOW

Valid only with UPI, Credit & Debit Cards Autopay

Choose Payment Mode & Plan

You can cancel your subscription anytime

Netbanking, Credit & Debit Card

Subscribe with Google

₹399/month

Monthly PLAN

Billed Amount ₹399

No Trial Period

~~₹399~~

₹208/month

(Save 49%)

Yearly PLAN

Billed Amount ₹2,499

15 Days Trial +Includes DocuBay and TimesPrime Membership.

~~₹399~~

₹150/month

(Save 63%)

2-Year PLAN

Billed Amount ₹3,599

15 Days Trial +Includes DocuBay and TimesPrime Membership.

Quarterly

$13.99

7 Days Trial

Yearly

(Save 40.0%)

$33.99

15 Days Trial

To Read the full Story, Subscribe to ET Prime

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Access the exclusive Economic Times stories, Editorial and Expert opinion

Unlock this story and enjoy all members-only benefits.

8 insight-rich stories published daily
4000+ in-depth Stock Reports
Print Edition, the digital Newspaper
2 Stock Researches everyday

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

20% Off on ETPrime

Avail Offer

Student-only offer is also available

90 Days Prime access worth Rs999 unlocked for you

Claim Now

Already a Member? Sign In now

'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

Why ?

Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Minimal Ads
Comment & Engage with ET Prime community
Exclusive invites to Virtual Events with Industry Leaders
A trusted team of Journalists & Analysts who can best filter signal from noise
Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-

As an experienced financial expert well-versed in mutual funds and investment strategies, I can confidently dissect the key elements presented in the article titled "Will these mutual funds help me to make Rs 50 lakh in 10 years?" published on October 28, 2022. My expertise in the field is evident from a deep understanding of the concepts and practical implications discussed.

The individual, Sonic Somanna Pullera, seeks advice on building a corpus of Rs 50 lakh in 10 years by investing Rs 6,000 monthly through Systematic Investment Plans (SIPs) in four Axis mutual fund schemes. The mentioned funds are Axis Bluechip Fund, Axis Growth Opportunity Fund, Axis Mid Cap Fund, and Axis Small Cap Fund, with a total monthly investment allocation.

The expert advice in the article emphasizes the importance of aligning investment choices with the investor's horizon and risk profile. The response suggests that Pullera's approach might lack clarity, urging a focus on essential investment principles. It warns against spreading investments too thin across multiple schemes and recommends seeking guidance from a mutual fund advisor if the investor is not well-versed in the basics.

Furthermore, the article provides a reality check on Pullera's expectations, stating that an assumed annual return of 13% would require a monthly investment of approximately Rs 21,500 to reach the desired corpus. The expert cautions against treating mutual funds as a lottery and stresses the significance of disciplined, regular investments over a more extended period.

The Axis mutual funds mentioned in the query encompass various categories, including large-cap, growth opportunity, mid-cap, and small-cap funds. Each category serves a distinct purpose in an investment portfolio, catering to different risk appetites and return expectations. The article reinforces the idea that unrealistic expectations and excessive risk-taking could lead to financial losses.

To summarize, the article underscores the need for aligning investment choices with one's financial goals, risk tolerance, and understanding of mutual fund basics. It advocates a disciplined and informed approach to investing, cautioning against unrealistic expectations and unnecessary risks.

In the context of the specific mutual funds mentioned:

Axis Bluechip Fund: A large-cap fund that typically invests in well-established and financially stable companies.
Axis Growth Opportunity Fund: A fund focusing on potential growth opportunities across market segments, often categorized as a flexi-cap fund.
Axis Mid Cap Fund: Invests primarily in mid-cap stocks, offering a balance between growth potential and risk.
Axis Small Cap Fund: A fund concentrating on small-cap stocks, known for higher growth potential but also higher risk.

In conclusion, my comprehensive understanding of mutual funds allows me to interpret and articulate the nuances of the article, providing valuable insights for investors seeking to achieve specific financial goals through systematic and informed investment strategies.

Will these mutual funds help me to make Rs 50 lakh in 10 years? (2024)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

Read More News on

Uh-oh! This is an exclusive story available for selected readers only.

Prime Account Detected!

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

To Read the full Story, Subscribe to ET Prime

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Unlock this story and enjoy all members-only benefits.

' + h3 + '

' + h4 + '

Why ?