Is SIP of Rs 10,000 pm in a mid-cap mutual fund enough to reach Rs 1 crore in 15 years?

How can one reach a target of Rs 1 crore in 15 years by investing in mid-cap funds, or should one diversify into other fund types, given their moderate risk profile.

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Is investing Rs 10,000 per month only in a mid-cap mutual fund enough to reach Rs 1 crore in 15 years   or should I diversify into other fund types based on my moderate risk profile?

Expert Advice: As someone who’s worked with investors across different life stages and goals, let me answer this with both numbers and perspective.

Will Rs 10,000 per month grow to Rs 1 crore in 15 years? It’s possible   but the key word here is possible, not guaranteed. To reach Rs 1 crore in 15 years, your investment needs to grow at an average annual return of about 18%. That’s a very optimistic number, even for mid-cap funds. At 12% annual return, you’ll reach about Rs 50–52 lakhs. At 14%, you may touch Rs 61–62 lakhs. To reach Rs 1 crore, you’d need to either invest more, extend the timeline, or earn much higher returns   which usually means taking on more risk.

Is it wise to rely only on one mid-cap fund? Mid-cap funds are known to do well over long periods. But they also swing more during market downturns. There can be years where they fall 25%–40%. If all your investments are parked in one such fund, you’re heavily exposed.

Given that you describe yourself as someone with moderate risk appetite, I would say   no, it’s not advisable to depend solely on one mid-cap fund. Risk in investing isn’t just about how much you can gain. It’s also about how well you can stay invested during bad years without panic. And that’s where a more balanced approach helps.

What should a better strategy look like? A sensible alternative would be to divide your monthly investment across 3–4 types of funds, each behaving differently in different market conditions.

Adds some stability through debt. This approach spreads out your risk and gives your money a better chance to grow without the extreme highs and lows of a single mid-cap fund.

Moreover, stick to your SIPs for the full 15 years. The longer you stay invested, the more the power of compounding works in your favour. Review your investments every year or two, not every month. It’s about staying consistent, not reacting to short-term movements. Increase your SIP gradually if your income allows. Even adding Rs 1,000 more every year can make a big difference over time.

Before focusing only on wealth-building, make sure you’ve covered the basics. Buy health insurance. Without it, one medical emergency can undo years of disciplined investing. Take life insurance as if you have financial dependents, a term insurance plan is non-negotiable. At least 3–6 months of expenses should be kept aside in a liquid, low-risk place. This ensures that you won’t have to stop your SIPs or break investments during unexpected events.

Investing Rs 10,000 per month in a single mid-cap fund might look good on paper, but it’s not built for a moderate risk profile. A mix of fund types can help you stay the course through both good and bad years and that’s what truly gets you to your goal.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.