Long-term return expectations from equity should be realistic

I wish to know which fund homes scheme should I put money into as per under particulars:

One time Investment in debt / another Instrument – 18 Lakh (Invest through STP Route – 40,000 to 50,000 month-to-month as per under shared Caps)

Risk Appetite – Moderated

Expected CAGR – 12% to twenty% for the given time horizon

Large Cap – 5 + Yrs STP round 10,000 to 12,000 month-to-month

Multi Cap / Hybrid Fund – 5 + STP round 10,000 to fifteen,000 Monthly

Mid Cap – 3 Yrs – STP round 5,000 to eight,000 month-to-month

Small Cap – 2 Yrs – STP round 5,000 to eight,000 month-to-month

Please advise the funds or correct allocations.


It is at all times good to diversify your funding, from your question it’s clear that you simply plan to do the identical. Before going to the funds the place you may make investments lumpsum and STPs, few essential factors associated to investing that will assist you to in future as properly. Ideally, over the long run, you may anticipate equities to earn round 12% from your funding. Hence, on the time of planning your funding for any aims, it’s instructed to maintain return expectations a bit conservative or realistic as equities might not be in a position to constantly give 15-20% return each year. At the identical time, it’s higher to take a position throughout totally different fund homes to diversify the chance, it’s possible you’ll like to limit the funding allocation in a fund to round 15% on the time of funding. You might take into account investing within the following funds to diversify throughout totally different funds and fund homes:

-UTI Nifty Index Fund – Rs.10,000

-Mirae Asset Large Cap Fund – Rs.8,000

-Parag Parikh Flexi Cap Fund – Rs.9,000

-Canara Robeco Emerging Equities Fund – Rs.9,000

-DSP Midcap Fund – Rs.8,000

-Kotak Smallcap Fund – Rs.6000

-Investing by STPs in equity is an efficient solution to make investments usually as you additionally get the good thing about investing in debt on the similar time. You can make investments lumpsum in Ultra Short Duration or Liquid Funds of the above AMCs after which arrange STP into the above-suggested equity funds.

Answer by Harshad Chetanwala, founder MyWealthGrowth.com

(Have personal finance queries? Email us at mintmoney@livemint.com)

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