I am currently investing through four SIPs of Rs 5,000 each in Mirae Asset Emerging Bluechip Fund, Mirae Asset Equity Fund, Kotak Standard Multicap Fund, and L& T Midcap Fund since last one year. I have a horizon of eight to 10 years. Should I continue with these funds or change? Please suggest. I can take moderate risk. How much returns I should expect after 10 years?
You are currently investing in a large & midcap scheme, two multi cap schemes (one scheme, Mirae Asset Equity Fund, is becoming a large cap scheme), and mid cap scheme. A long-term term investor with a moderate risk appetite should invest mostly in multi cap schemes. He can also invest a part of the corpus in large cap schemes to diversify the portfolio and reduce the overall risk in the portfolio. Large & mid cap schemes and mid cap schemes are suitable for moderate investors as these schemes have a higher risk. They are suitable to aggressive investors with an appetite for risk and volatility.
You may consider a mutual fund advisor near you for a personalised advice.
You can expect to earn 10-12 per cent returns from your equity mutual funds over a long period. You might earn more, but it is better to have realistic or conservative expectations.