I would like to invest in mutual funds to meet my target of building Rs 15 lakh in 5 years, how much should I invest and in which funds?
You will need a monthly investment of Rs 18,200 earning an annualised 12 per cent to achieve your target of Rs 15 lakh in five years or Rs 16,800 earning 15 per cent returns. You can build a portfolio made of large-cap funds such as DSPBR Top 100 Equity or Franklin India Bluechip along with large- and mid-cap funds such as HDFC Top 200 or Fidelity India Growth to achieve this target. These are highly rated funds with a proven track record and performance history to invest in. However, make sure you check the performance of these funds at least once a year to assess its progress towards your financial goal.