Have I chosen the right mutual funds to create Rs 3 crore?

I am very new to mutual funds. I have been learning about mutual funds. I am 28 years old and I would like to invest in mutual funds for 30 years to create a corpus of Rs 3 crore for my retired life. I would like to invest in:

Axis Blue Chip fund : Rs 4,000
HDFC Small Cap fund : Rs 5,000

I can take moderate risk to fulfill my goal.

Please let me know shall I start my investment in these funds or need some changes in my portfolio.
–Shilpi Paul

First, if you are new to mutual funds and do not know much about investing in mutual funds, you should consult a good mutual fund advisor in your locality before proceeding further. New investors often need a lot of handholding and guidance in the initial years.

You have chosen a largecap scheme and smallcap scheme. Largecap schemes are ideal for conservative equity mutual fund investors, and smallcaps are suitable for aggressive investors. Since you have a moderate risk appetite, you should invest mostly in multicap schemes. If you want to diversify your portfolio and reduce risk, you may invest a part of your corpus in largecap schemes.

To create a corpus of Rs 3 crore in 30 years, you should invest Rs 8,500 every month. We have assumed that your investments would generate an annual return of 12 per cent. Instead of taking a round figure like Rs 3 core, work with real numbers to arrive at a realistic target corpus for your retirement.

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