I am first time investor in mutual funds and want to invest regularly through SIPs to have Rs 20 lakh at the end of five years. Is it possible?— Madhu Maharana
Let’s work backwards - how much do you need to invest to have Rs 20 lakh at the end of five years? If your portfolio earns an annualised return of 12 per cent, you would need to invest Rs 24,300/month. If the returns are upped to 15 per cent, you would need Rs 22,400/month to reach your goal.
We suggest you invest Rs 10,000/month in two large cap funds (Equity: Large Cap), Rs 5,000/month in a multi-cap fund (Equity: Multi Cap) and the remaining amount in two balanced funds balanced funds (Hybrid: Equity).
If you go on our website, ValueResearchOnline.com, you will be able to see the best performers (5 star ratings) under each category. Make your selection and invest systematically. Keep checking the performance of the funds every six months.