Pension Mutual Fund: Will these mutual funds help me earn Rs 7-8 crore?

I’m 34 years old. I have a moderately aggressive risk profile according to the quiz. I plan to accumulate around Rs 7-8 crore over the next 20 years for retirement. I have invested in the funds listed below through a monthly SIP over the past year.

Mirae Emerging Bluechip Fund: Rs 6,500

Axis Growth Opportunity Fund: Rs 1,500

Canara Robeco Bluechip Fund: Rs 4,000

Axis Blue chip fund: Rs 4,000

PPFA Flexi cap fund: Rs 7,000

UTI flexi cap fund: Rs 3,000

PGIM midcap opportunity: Rs 6,000

Axis Small Cap Fund: Rs 4,000

ICICI Technology Fund: Rs 5,000

Mirae Tax Savings Fund: Rs 5,000

I plan to increase the amount of SIP by 10% each year. Considering the current market situation, please advise whether the above funds are correct or whether restructuring is necessary.

–MD Nazim

Assuming an annual return of 12%, you would need to invest around Rs 80,000 every month for the next 20 years to build up a corpus of 8 crore. You are currently investing around Rs 4,600. This means that you should invest almost double what you are currently investing. You can either narrow the target corpus or aggressively start saving and investing.

Try to define your risk profile well and try to consolidate your portfolio. Investing a small amount in too many plans will not help you diversify your portfolio and maximize returns. If your risk profile is moderate, try investing in two multicap funds. If you want to take on more risk for higher returns, try to define what percentage of your portfolio should be made up of risky options such as mid-cap plans, small-cap plans, etc. Remember that more risk also means more volatility in your portfolio. You should have the risk appetite and the patience to wait for a long time to get a higher return.