Ask The Expert: How to earn Rs 1.5 crore by investing Rs 7,000 per month in mutual funds?

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© India Today Group Ask The Expert: How to earn Rs 1.5 crore by investing Rs 7,000 per month in mutual funds?

Query- I have been investing Rs 7,000 per month in Franklin Flexi Cap Fund, Canara Robeco Bluechip Equity Fund and DSP Equity Opportunities Fund for the last one year. I am 32 years old. I am saving for my retirement. I have a high-risk tolerance as I believe I have time to take that risk. Kindly advise if these funds are suitable for me to achieve a target corpus of a minimum of Rs 50 lakh by the time I turn 60. Also, I want to add two tax saving or ELSS mutual funds to my portfolio. I want to invest Rs 6,000 per month in these tax saving funds. Kindly advise which are the best tax saving schemes for me which can give the highest returns.

Aniruddh Mehedi

Answer- I would recommend a few changes to your mutual fund portfolio. You should stop investing in Franklin Flexi Cap Fund. The two schemes are enough to invest Rs 7,000 per month. You may select Axis Long Term Fund to invest Rs 6,000 for tax saving purposes. By the time you are 60, you will be able to accumulate around Rs 1.5 crore which is equivalent to Rs 50 lakh today, if you continue to invest Rs 7,000 only. But if you keep increasing your SIP every year even by 10%, you will do much better. Focus on staying invested and you’ll definitely reach your goal.

Shweta Jain, founder, Investography

(Views expressed by the investment expert are his/her own. You may e-mail us your investment queries at mymoney@intoday.com. We will get your queries answered by our panel of experts.)