Will these mutual funds give me 10-15% returns? Should I go & invest directly in mutual fund scheme or should I have a mutual fund/financial advisor?

1) Will these mutual funds give me 10-15% returns?

2) Should I go & invest directly in mutual fund scheme or should I have a mutual fund / financial advisor to guide me in investing in mutual funds?

Question – 1 - Will these mutual funds give me 10-15% returns?

I have been investing Rs 60,000 in these mutual funds via SIP since the past one year:

Fund 1, Fund 2, Fund 3, Fund 4 & Fund 5

Are these investments in mutual funds good for a long investment horizon for around 10 years to get 15-20% return?- Client to MoneyGuru Finserv

Reply by MoneyGuru Finserv (Founder and Co-Founder)

Instead of asking whether these mutual funds are good, you should always ask whether these schemes are suitable for you. In other words, you should focus on whether these schemes are suitable to achieve your investment objective. This is the reason why we always ask our clients to choose mutual funds based on their goals, investment horizons, and risk profile.

For example, if you have a conservative risk appetite, you should invest in large cap mutual funds. If you have a moderate risk profile you may invest in flexi cap funds.

You are investing in three large cap funds, including an index scheme, a small cap scheme and flexi cap scheme. Most of your investments are in large cap schemes. You also have a small exposure to a small cap scheme. Ensure you are okay with the extra risk and high volatility associated with it.

Question – 2 - Should I go & invest directly in mutual fund scheme or should I have a mutual fund / financial advisor to guide me in investing in mutual funds?

(watch out the reply in next post.. will be uploading the next post soon)