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I am looking at creating a corpus of around Rs 3,00,000 exactly three years from now. I need this money for my wedding.

My SIP investments are:

Reliance [Get Quote] Growth: Rs 2,000
Franklin India Prima: Rs 1,000
Magnum Global: Rs 2,000
Magnum Contra: Rs 1,000

Are my investments well spread out? Can I meet my goal in three years?

- Amit Awasthi

Your SIP needs you to invest Rs 6,000 every month. To accumulate Rs 3,00,000 by investing Rs 6,000 per month for the next three years, you would need your investments to grow at an annualised rate of 22.5%. This is a bit optimistic, particularly considering the present state of the stock market!

As far as the choice of funds is concerned, you have chosen some of the best performing funds available.

But please note that three of these -- Reliance Growth, Franklin India Prima and Magnum Global -- invest heavily in mid- and small-cap stocks and are bound to be quite volatile.

Mid- and small-cap stocks have taken quite a beating since the market began to fall and you would have felt the impact on your portfolio as well.

But we must point out that mid-caps also have the potential to generate superior returns during good times, and you have some of the best available funds to take advantage of that.

However, things do not look very optimistic for equity markets at least in the short run. No doubt, equity is an attractive asset class from the long-term perspective. But, given your stiff target and not too long investment horizon, you should tone down your expectations.

You need this money for a fixed goal. Avoid taking aggressive investment decisions in an attempt to make quick money.

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