If yes, which funds to choose? My risk profile is moderate but I can take high risk.
–Parshuram
Assuming an annual return of 12% on your investment, you need to invest around Rs 86,081 every month to create a corpus of Rs 2 crore in 10 years. You can start with whatever you can invest, and increase it every year as your salary goes up. This strategy will help you to achieve your target.
We always ask investors to choose mutual funds based on their goals and risk profile. If you have a moderate risk profile, you may choose flexi cap mutual funds. These schemes can invest across market capitalisations and sectors/themes based on the outlook of the fund manager. They are considered ideal for moderate investors to create wealth over a long period. Here are our recommendations: Best flexi cap funds
Do not take unnecessary risks to earn higher returns, especially if you are new to mutual funds. Many inexperienced investors take higher risk to earn higher return, they realise their mistake when the market gets into a bad phase or volatile. Many investors find it difficult to handle and they discontinue or sell their investments – sometimes at a loss. That is why we don’t recommend risky options to new investors.
However, if you have the experience, you can invest in risky options like mid cap and small cap schemes. Ensure that you fix a percentage for risky investments and stick to that by rebalancing your portfolio at regular intervals.
