How much more should I invest to create Rs 2 crore?

I want to create Rs 2 crore in the next 20 years. I am investing through SIP in ICICI Prudential Ultra Short Term Fund (Rs 2,000) for an emergency fund; Rs 2,000 in Mirae Asset Tax Saver Fund and Rs 2,000 in HDFC Small Cap Fund. Can you suggest how much more should I invest? Also, should I invest in multi cap and mid cap funds, too?
-Yuvaraj Vaaji

Assuming an annual return of 12 per cent on your investments, you should invest a little over Rs 20,000 every month to create a corpus of Rs 2 crore in 20 years. However, you should try to quantify your goals, provide for annual inflation and taxes, to reach at a realistic target to take care of your future financial goals.

You should always choose your mutual funds based on your goals, investment horizon, and risk profile. For example, if you are a conservative equity investor, you should invest mostly in large cap mutual funds. Similarly, if you have a moderate risk profile, you should invest mostly in multi cap schemes. Aggressive investors can consider investing in mid cap and small cap schemes.

Assess your risk appetite (take an online quiz if need be) and choose mutual funds accordingly. Don’t choose every mutual fund category in the name of diversification. Adopt a goal-based investment strategy to spread your investments across different asset class in line with you objective and risk profile.


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