Be a Crorepati at 40: Invest in These Funds

• Expert advised investors on fund mix and SIP step-ups for Rs 1 crore goal.
• Nippon Large Cap, ICICI Prudential, Invesco, HDFC, Motilal Oswal funds highlighted.
• Avoid fund overlap; increase SIPs and step-ups for targets; diversification is key.

5 Mutual Fund schemes: Many investors dream of becoming a crorepati by 40 or building Rs 1 crore for retirement. But this requires more than just starting

SIPs, you need the right fund mix, higher contribution, and the discipline to step up investments every year. Let’s see what experts advised real-life investors and which five mutual fund schemes came out as strong long-term picks.

Case 1: Pawan Kumar’s Goal of Rs 1 Crore in 15 Years

Pawan Kumar, 40, started investing just six months ago with a SIP of Rs 7,000. His target is Rs 1 crore in 15 years. Expert Sharad Tandon pointed out that while Pawan’s chosen schemes are decent, there is duplication since he holds both a Nifty Index Fund and a large-cap fund. Instead, Sharad suggested sticking with a strong large-cap option like Nippon Large Cap Fund and shifting part of the index allocation into an aggressive scheme.

At the current SIP, Pawan can reach only Rs 60–70 lakh in 15 years. To bridge the gap, he needs to either increase SIP to Rs 10,000–12,000, step up contributions by 15–18% annually, or extend his horizon by another year.

Case 2: Sanjay’s Multi-Fund Portfolio

Sanjay, aged 43, has spread his SIPs across four schemes: ICICI Prudential Large & Mid Cap Fund, ICICI Prudential Focused Equity Fund, Invesco Mid Cap Fund, and HDFC Flexi Cap Fund, along with Rs 21,000 monthly in his PF.

While all four schemes are strong, Sharad highlighted overlap, as Focused Equity behaves much like a flexi-cap. Sanjay can continue with these funds but must step up SIPs by 15% (instead of 10%) to reach his Rs 1 crore target comfortably. For a slightly aggressive approach, one flexi-cap allocation could be switched to a mid-cap fund.

Case 3: Ranjan’s Small & Midcap Mix

Ranjan invests Rs 5,000 spread across Motilal Oswal Mid Cap Fund, Motilal Oswal Small Cap Fund, and HDFC Flexi Cap Fund, and also planned to add Parag Parikh Flexi Cap Fund with Rs 1,500 SIP.

The advice: avoid repeating categories. Since HDFC Flexi Cap is already in the portfolio, adding another flexi-cap doesn’t add value. Instead, increasing SIPs in his existing three funds would be more effective. With step-ups, he could reach Rs 60–65 lakh in 20 years; without them, his corpus may stay around Rs 35–40 lakh.

THESE 5 Mutual Fund Schemes to Consider

From these discussions, five mutual fund schemes stood out as solid picks for long-term wealth creation:

1. Nippon Large Cap Fund – stability through large-cap companies.
2. ICICI Prudential Large & Mid Cap Fund – balanced exposure to large and mid-cap stocks.
3. Invesco Mid Cap Fund – growth potential with mid-cap leaders.
4. HDFC Flexi Cap Fund – flexible allocation across market caps.
5. Motilal Oswal Small Cap Fund – wealth creation potential with small-caps.

Reaching Rs 1 crore by 40 is possible, but only with higher SIP amounts, consistent step-ups, and avoiding overlapping schemes. These five funds together give a diversified mix across large, mid, flexi, and small-cap categories. With discipline, investors can build a strong portfolio and move closer to their crorepati goal.

Source: ET NOW

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)