Mutual funds to build a corpus of Rs 1 crore

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I am 38 years old. I have a moderate risk appetite. Can you please suggest mutual funds to start an SIP for the next 10-12 years to build a corpus of around Rs 1 crore. I can invest Rs 30,000 per month.

— Chander Shekhar

Subir Jha, founder, Buckspeak, a financial planning firm based in Hyderabad, responds:

Assuming your ‘moderate’ risk profile, I would recommend an Equity : Debt split of 60:40 . Based on historical returns for equity and future interest rates , we should be able to create a corpus of Rs 80-85 lakhs in 12 years . So, how do you fill the gap ? In general, your income would go up in these 10-12 years. As a best practice, I would recommend you to keep increasing your monthly SIPs in the same proportion. That would definitely help you to reach closer to your target of Rs 1 crore. Also, if you are looking to withdraw the corpus at the end of the tenure, you should keep reducing your equity exposure in the last 5 years

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