Will these mutual funds offer Rs 3 crore for my child’s education?

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I have been investing Rs 15,000 in five mutual funds (Rs 3,000 each) since the last one year.
Canara Robeco Bluechip Fund
Mirae Asset Midcap Fund
PGIM Flexicap Fund
Quant Active Fund
SBI Focused Fund
My risk profile is moderately aggressive and I am okay with the higher risk. I will increase my SIP by Rs 500 in each fund annually for the next 18 years. Please suggest changes if any. Will the below funds help me create a corpus of Rs 3 crore for my kid’s education?

–Dhruva Darshan

It is not possible to comment about your mutual fund portfolio as your risk profile is not well defined. Only you would know how aggressive you want to be. It also remains to be seen what would be your relationship with risk when the market gets into a bad phase. Try to sharply define your risk profile. Take a few online quiz if you can’t make up your mind. Once you know your risk profile, you should ensure that you are investing in schemes that match your risk profile. You are investing in too many schemes. Investing a small amount in too many schemes will not offer you the benefit of diversification or maximise your returns. You don’t need more than two schemes now. When you start investing a large amount of money in the future you can add more schemes.

Assuming an annual return of 12%, you need to invest around Rs 39,000 every month to create Rs 3 crore in 18 years. That means you need to invest more than double the amount to create your target corpus in 18 years. Try increasing your investments in line with your salary hike every year. It will help you to achieve your goals.

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