Will these mutual funds build Rs 5 crore in 20 years?

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I am 30 years old. I am investing Rs 20,500 in mutual funds every month. I am investing various funds:

  • Axis ESG Regular: Rs 2,000
  • Axis Midcap Fund Regular: Rs 3,000
  • SBI Nifty Next 50 Regular: Rs 2,000
  • Motilal Oswal S&P 500: Rs 2,000
  • ICICI Prudential Fund: Rs 1,500
  • Canara Robeco Emerging Equities: Rs 1,000
  • L&T Nifty 50 Regular: Rs 2,000
  • Canara Robeco Value Fund: Rs 2,000
  • UTI Small Cap Regular: Rs 3,000
  • Canara Robeco Focussed Direct: Rs 2,000

These funds are in the growth option. Will I be able to build a wealth of Rs 5 crore in 20 years or should I reallocate my portfolio?

-Keerthi Vasan

Assuming an annual return of 12%, you will be able to build a corpus of around Rs 2.05 crore in 20 years by investing Rs 20,500 every month. You can invest more as and when your salary goes up. It will help you to achieve your goal.

Regarding your mutual funds portfolio, you are investing in too many schemes. Investing very small amounts in too many schemes will not help you to achieve meaningful diversification or maximise returns. Limit the number of schemes to two to four. Always choose the schemes based on your risk profile. For example, if you are a moderate long-term investor, you invest mostly in flexi cap funds. If you are a conservative long-term investor, you should invest in large cap funds.

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