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Mission 10 Lakh

Investing via SIPs in well-performing large-cap funds can help you achieve your goals…

I have investments in HDFC Taxsaver, Magnum Tax Gain and SBI Tax Advantage Series 1. All of these investments were for tax savings and have completed the mandatory three-year lock-in. I wish to have SIP investments in non-tax saving funds; can you suggest funds that I can start investing in? I want to build a corpus of Rs 10 lakh in 10 years.— Anand

You have certainly not picked the best of the lot. Where investments in other funds are concerned, it is good that you are considering a systematic investment plan (SIP). However, you have failed to tell us how much you plan to invest in these funds. If you want to invest in a large-cap fund, consider Franklin India Bluechip or DSPBR Top 100 Equity. If you prefer an option from the ‘Mid & Small Cap’ category, consider DSPBR Micro Cap or IDFC Premier Equity
. To achieve your goal of accumulating Rs 10 lakh in 10 years, you need to invest Rs 4,400/month in a portfolio that earns 12 per cent annualised returns or Rs 3,600/month in a portfolio that earns 15 per cent. You can expect to achieve this through your investment in the above mentioned funds. However, do track the performance of your investments to make any necessary course correction.

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