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I am looking to make Rs 1 core and am investing Rs 5,000 every month in HDFC Balanced, HDFC Top 200, ICICI Prudential Focused Bluechip Equity, HDFC Mid Cap Opportunities, Axis Equity, Axis Triple Advantage and HDFC Children Gift Savings for almost a year now. I am interested in adding Rs 15,000 every month. Which funds should I invest in and how fast will I reach my goal?
— Peter Joseph

You are currently investing Rs 35,000 every month across seven funds and plan to increase this to Rs 50,000. You will reach your goal of accumulating Rs 1 crore between 9 and 10 years if your investments earn an annualised 12 per cent return or between 8 and 9 years if the same investment earns an annualised 15 per cent return.
However, in your hurry to become a crorepati you have missed on the basic tenets of mutual fund investing-fund selection and portfolio building. A portfolio of seven funds amounts to diversity in numbers and not style.
You have invested in two new funds from Axis Mutual Fund which have no substantial track record. There are too many schemes from one single fund house. And you have three hybrid funds, which make your portfolio conservative. We have put forth a suggested portfolio of six funds; you can discontinue the systematic investments in the other funds.

Fund    Category    Rating    Allocation DSPBR Top 100 Equity   EQ-LC   *****   20% Fidelity India Growth   EQ-LC&MC   *****   20% HDFC Top 200   EQ-LC&MC   *****   20% ICICI Pru Focused Bluechip Eq   EQ-LC   *****   20% ICICI Pru MT Prem Plus   DT-INC   *****   10% IDFC Small & Midcap Eq   EQ-M&SC   *****   10% Rating as on August 31, 2011

This article was originally published on September 30, 2011.