–Subrato Mozumdar
First, your risk profile is vague. You should define it sharply. Moderate to aggressive is open to interpretations. You should decide how much of your portfolio would be in mutual funds with moderate risk and how much of it would be in high risk schemes. Two, often investors have multiple goals. That’s why we believe investors should always have a list of goals and a proper investment allocation plan before starting investing. Tweaking the investment plan afterwards would require a lot of work.
Assuming an annual return of 12%, if you invest Rs 70 lakh, you would be able to create a corpus of Rs 6.75 crore in 20 years. As you can see, you have unrealistic expectations from your investment.
You should define your risk properly and choose schemes that are in line with it. For example, if you have a conservative risk profile, you should invest mostly in large cap funds. If you have a moderate risk profile, you can invest in flexi cap mutual funds. If you want to invest in high-risk schemes, you can invest in mid-cap, small cap, sector, and thematic schemes. However, as I said earlier, you should decide what percentage of your investment will be in these schemes.
