How to Invest Rs 10 Lakh for the Next 10 Years: Key Advice from Motilal Oswal AMC
Many investors reach a point where they have saved a meaningful sum, such as Rs 10 lakh, and want to put it to work for the long term. The question is simple but important: where should this money go? At the ET Wealth Expo, Prateek Agrawal of Motilal Oswal Asset Management Company shared his views on how investors can deploy Rs 10 lakh over a 5 to 10 year horizon through mutual funds.
His core message was straightforward. Investors with a long horizon should lean toward growth-oriented strategies. They should also avoid putting all their money with a single fund manager. Instead, spreading the money across two fund managers can reduce dependence on one investment style and one set of decisions.
Why a 5 to 10 Year Horizon Matters
Time is the most powerful tool an investor has. Over 5 to 10 years, short-term market swings tend to matter less. Companies get time to grow their earnings, and funds get time to recover from temporary setbacks. This is why Agrawal’s advice focuses on growth. A longer runway allows investors to take on more equity risk in exchange for potentially higher returns.
However, a long horizon does not mean investors should be careless. It means they can afford to stay invested through volatile periods instead of selling in a panic. The key is to choose strategies that can compound wealth steadily over many years.
Diversify Across Two Fund Managers
One of the practical suggestions from Agrawal was to split the portfolio between two fund managers. Every fund house has its own research process, stock selection style and risk approach. By using two managers, an investor avoids putting all eggs in one basket.
For example, an investor could divide Rs 10 lakh into two parts and place each part in a fund from a different AMC. If one manager’s style falls out of favour for a year or two, the other may still perform well. This balance can make the overall journey smoother.
Flexi-Cap Funds as a Core Choice
Agrawal highlighted flexi-cap funds as an opportunity. These funds can invest across large, mid and small-cap stocks. That flexibility lets the fund manager shift the portfolio based on where they see the best value and growth. For a long-term investor, a flexi-cap fund can act as a core holding because it is not tied to one segment of the market.
Look at Emerging Sectors and AI-Linked Businesses
The Motilal Oswal AMC executive also pointed to emerging sectors and businesses linked to artificial intelligence as areas of opportunity. New technologies and new industries often create fresh growth stories. Companies that adopt AI or build products around it may see faster growth than older, slower-moving businesses.
Still, investors should treat such themes with care. Emerging sectors can be exciting, but they can also be volatile. A measured allocation, rather than an aggressive bet, is usually wiser for most investors.
A Mix of Growth and Value
Agrawal advocated focused investing along with a blend of growth and value strategies. Growth investing looks for companies expanding quickly, while value investing looks for companies trading below their worth. Combining the two can help balance the portfolio when market conditions change.
What This Means for the Average Investor
The takeaway is clear. A Rs 10 lakh portfolio built for 5 to 10 years should be growth-focused, spread across two fund managers, and built around flexible funds like flexi-caps. Adding exposure to emerging themes and a mix of growth and value styles can round out the plan. Most importantly, investors should stay patient and let time do its work.
