I need ₹50 lakh in 8-10 years. How much should I invest and where?

Identify withheld on request

We advise you construct an equity-oriented portfolio submit holding 10% of the portfolio in cash market funds to maintain contingencies. Fairness as an asset class has the potential to ship superior returns over an extended time-frame. One could make investments both by lumpsum or SIP mode in equity-oriented mutual fund schemes. To construct a corpus of Rs.50 Lakhs in 10 years, one must make a month-to-month SIP quantity of Rs.22000 (Assuming a CAGR return of 12%). You may consider constructing the portfolio with a wholesome mixture of funds from Giant & Mid Cap, Flexi Cap, Mid Cap and Worth classes of fairness. It’s advisable to divide the month-to-month SIP quantity (Rs.22000) equally amongst Axis Progress Alternative Fund, HDFC Giant & Mid Cap Fund, Parag Parikh Flexi Cap Fund, UTI Flexi Cap Fund, Mirae Asset Mid Cap Fund and IDFC Sterling Worth Fund. This fashion your portfolio shall be diversified throughout the class, geography, and AMCs.

Q2) Hello, I want 15 lakh in 6 years, and for that I’ve began SIPs of ₹1,000 in Axis bluechip fund and Nippon India small-cap. In addition to, I’ve began a SIP of ₹2000 within the Parag Parekh Flexi cap.

Identify withheld on request

To construct a corpus of ₹15 Lakhs in 6 years, one must make a month-to-month SIP quantity of Rs.15000 (Assuming a CAGR return of 12%). So, you’ll want to both enhance your funding horizon or enhance the month-to-month SIP quantity (on the present SIP quantity of Rs.4000) to realize your required purpose. Fairness as an asset class has the potential to ship a superior return in the long term. We advise the extra SIP quantity equally divided among the many funds from Giant & Mid Cap, Flexi Cap, Mid Cap and Worth classes of fairness. Steered funds are Canara Robeco Rising Fairness Fund, Axis Progress Alternative Fund, UTI Flexi Cap Fund, Kotak Rising Fairness Fund and IDFC Sterling Worth Fund. It’s also advisable to overview your portfolio at the least every year.

Queries answered by Sanjiv Bajaj, joint chairman and MD, Bajaj Capital. 

Queries and views at mintmoney@livemint.com