Well, well, since I run a blog and not interested in your business, let me be blunt. No. Never. Nyet.

Simply because for me the cut off for investing in equities is 10 years. So at 10 years at least I will consider a 90% equity portfolio. However I will start re-balancing from the 12th month into a debt fund with say  3/4 year duration portfolio. By the time your portfolio reaches say 7th year I would be at 70% debt and 30% equity. By the 8th year I wou wld be in 10% equity. So unless there is magic you will not reach Rs. 1 crore. However as an eternal optimist I will not say it cannot happen. What would happen if 2003-2007 were to repeat itself? and you clung on with all your guts? If instead of a one time investment of Rs. 500,000 you were to invest Rs. 500,000 every year and you stayed ois n in equity from 2017 to 2027, there is a decent chance that you MAY reach Rs. 1 crore – with an IRR of 12%.

However, as a sensible solution, my request to you is you need to increase ‘n’ from 10 to 15 years, downsize the goals, and increase the amount to be invested. -This is the best answer that I can HONESTLY give you. However, in times when I need to keep YOU happy I may have to give you different answers. The best part for you to remember of course is “Past performance is not an indicator of future performance”.

However if I were an HONEST IFA – I still need Aum, so my reply will be as follows:

Sir,

Ever  since my clients have been doing sip they have been getting returns in the region of 21% to 22% p.a. – I can show you their statements. Since you have come to me – what is the use if I cannot get you at least 18% return? So in a combination of equity funds – large cap, mid cap, and micro cap funds you may be able to get to Rs. 1 crore. I wish apart from this Rs. 500,000 you should also do a sip of Rs. 200,000 per annum for the whole period of 10 years. With a little luck and 21% p.a. cagr, you WILL reach Rs. 1 crore.

If I were an aggressive IFA, I will reply as follows:

Sir,

Of course this will happen. If you see the return that the Total return Index see the return that one has got from 1979 till date. As you have 10 years to go if you are willing to put in small and micro funds you will do much better than putting it in large cap funds. You should put Rs. 2 lakhs in mid cap fund and Rs. 3 lakhs in micro cap funds. If you can add some more funds your chances of reaching Rs. 1 crore is higher.

Exactly what you say when your life depends on AUM

https://www.equitymaster.com/outsideview/detail.asp?date=03/22/2017&story=3&title=Why-Mutual-Fund-Investors-Should-Not-Worry-About-Market-High-But-PersonalFN&utm_source=short-url