fund

Can I expect 15% returns from my mutual fund portfolio?


I have a high risk appetite. I am a long-term investor investing Rs 22,000 per month in SIP for 10-15 years with a 10% step- up in the below mentioned funds:

Axis Small Cap Fund: Rs 7,000
Parag Parikh Flexi Cap Fund: Rs 8,000
Mirae Asset Tax Saver Fund: Rs 2,000
Quant Tax Plan: Rs 5,000

I am expecting 15% return. Does this portfolio justify that expectation?

–Kiran Bhat

You are investing in a small cap scheme, flexi cap scheme, and two elss schemes. As you know, a small cap scheme is risky and volatile, but it has the potential to offer higher returns over a long period. Provided you continue with your investments through bad phases in the market. Quant Tax Plan also has 30% investments in mid cap stocks. However, Quant Mutual Fund alters it’s investing strategy based on market condition. You may hope to get extra returns from these two schemes over a long period.

However, you should remember that we are assuming that equity mutual funds offer 12% returns and extra risk may help us get extra returns. These are assumptions and the real returns may depend on the performance of the market.



You should also remember that your risk profile need not be what you think it is. Your risk-taking ability and your willingness to take risks need not be the same. Take an online quiz to find out your risk profile and ensure that the schemes are in line with your risk profile. It is essential to choose mutual funds based on your risk profile. It will help you to continue with your investments even during a rough phase in the market.



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