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Can I build a 20 Crore corpus in 12 years with a 35-45L salary and loans?

Milind

Milind Vadjikar  |951 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 03, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Sep 25, 2024Hindi
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I am 32 old person .I want to build corpous amount of 20 crores in coming 12 years . I have loan of 10 L PL and home loan of 40 L. I hold a salary of 35 -45th monthly .plz suggest me a good idea and investment plan to get 20 crores in coming 12 years with wise investment

Ans: What is your EMI for the two loans?Also please share approx monthly expenses so as to be able to guide you suitably.
Asked on - Oct 03, 2024 | Answered on Oct 03, 2024
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Two EMI loans covers 35 thousand per monthly rest left amount is 10k in hand
Ans: You may be needing that 10K to cover your regular expenses. We will need some surplus amount required for investments from your income. Please let me know if I am missing something.
Asked on - Oct 03, 2024 | Answered on Oct 03, 2024
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Overall expenses are covered a person with no rent and groceries cost to 2-4thousand per month is enough for an household .so left amount in hand is 6-7thousand .
Ans: If you do a monthly sip for 6 K in pure equity fund for 28 years then you may expect to receive a corpus of 2 Crs. A modest return of 13% is assumed.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.
Asked on - Oct 03, 2024 | Answered on Oct 03, 2024
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Thanks for ur answers which really blows out me rethink where and when can I get 20 crores
Ans: Believe in your ability. One day you may earn that money from your primary income apart from investments.

Hardwork and perseverance helps in the long run.

But avoid cryptos, FNO trading, lottery and such other activities akin to gambling.

All the best!!
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 06, 2024Hindi
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I'm 52 years male with 2 crore self house, shop worth 1.8 crore possession with 18 months , a garage commercial on rent receivable of 40k every month, approx 2 crore with cash in hand , want to accumulate a corpus of 10 Crore with 10 years , having no income right now. No loans and liabilities i have currently.Monthly expenses of 1.25 to 1.5 laks per month Wife 42 years , Sons 18 & 11 years , daughter 21 years. Medical insurance of 15 laks. Please advice an achievable plan of investment.
Ans: With your assets and goals in mind, let's craft a plan to accumulate a corpus of 10 Crore in 10 years:

Firstly, let's leverage your existing assets:

Your self-owned house and shop are valuable assets that can provide stability and potential appreciation over time.
The commercial garage rental income adds to your monthly cash flow, which is a positive aspect for your financial planning.
Given your current cash reserve:

Utilize a portion of your cash reserve for immediate expenses and emergencies.
Allocate the remaining amount strategically towards investments that align with your long-term goal.
Considering your lack of current income:

Explore investment avenues that offer a balance of capital appreciation and regular income generation.
Focus on creating a diversified investment portfolio to spread risk and maximize returns over the long term.
For your monthly expenses:

Ensure that your investment strategy takes into account your monthly expenditure needs, aiming for a balance between growth and liquidity.
Regarding your family's financial security:

Continue to maintain adequate medical insurance coverage to safeguard against unforeseen health expenses.
Consider allocating a portion of your investment towards education and future financial needs of your children.
Remember:

Regularly review your investment portfolio and adjust your strategy as needed to stay on track towards your goal.
Seek guidance from a Certified Financial Planner to fine-tune your investment plan and address any concerns or uncertainties.
With diligence and a well-thought-out strategy, achieving your financial goal is within reach.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jul 17, 2024Hindi
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Hi I am P Das, 40 yrs old. my monthly in hand salary is 80k. Monthly expenses 40 k. My investment so far PPF 6 lac, NPS 15 lac FD 14 lac, monthly NPS contribution is 18 k with employees and employer both. I want to build a corpous of 3 cr in next 20 yrs. Please suggest
Ans: Das, at 40 years old, your monthly salary is Rs. 80k. Your monthly expenses are Rs. 40k. This leaves you with Rs. 40k for investments and savings.

Your current investments are:

PPF: Rs. 6 lakhs
NPS: Rs. 15 lakhs
FD: Rs. 14 lakhs
Your monthly NPS contribution is Rs. 18k, combining both your contribution and your employer’s.

Financial Goals
You aim to build a corpus of Rs. 3 crores in the next 20 years.

Assessment of Current Strategy
PPF
Your investment in PPF is good for long-term growth and tax benefits. It has a stable interest rate and risk-free returns.

NPS
Your NPS contributions are excellent for retirement planning. NPS offers tax benefits and market-linked returns, making it suitable for long-term growth.

Fixed Deposits
FDs are safe but offer lower returns compared to other investment options. Consider reallocating some of these funds for higher returns.

Recommendations for Improvement
Increase Equity Exposure
Equity investments have the potential for higher returns over the long term. Consider starting SIPs in equity mutual funds.

Diversify Investments
Diversifying your investments helps reduce risk. Apart from PPF and NPS, you can invest in mutual funds and bonds.

Adjust Fixed Deposits
FDs are low-return investments. Reallocate a portion of your FD corpus to mutual funds for better returns.

Consistent Review and Adjustment
Review your investments regularly. Make adjustments based on market conditions and your financial goals.

Mutual Funds
Equity Mutual Funds: Start SIPs in diversified equity mutual funds. These funds have higher growth potential.
Actively Managed Funds: Actively managed funds can outperform index funds due to professional management.
Retirement Planning
Your NPS contributions are excellent. Continue this for a stable retirement corpus. Additionally, allocate funds to mutual funds for diversified growth.

Emergency Fund
Ensure you have an emergency fund. This should cover 6-12 months of expenses and be kept in a liquid asset.

Tax Planning
Maximize your tax-saving investments. Ensure you are using instruments like PPF, NPS, and tax-saving mutual funds.

Final Insights
Your current investment strategy is solid, but can be improved. Increase your equity exposure for higher long-term returns. Diversify your investments to reduce risk. Review and adjust your portfolio regularly.

Start SIPs in equity mutual funds and consider reallocating some FD funds to higher return investments. Maintain an emergency fund and maximize tax-saving investments.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 22, 2025

Asked by Anonymous - Jan 13, 2025Hindi
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I am 41 years old. How to create a financial plan to accumulate a wealth of 20 crore in 20 years. My annual salary is 60 lakhs. My current home loan emi is 1.2L for 20 years and car emi is 35K for 7 years.
Ans: To achieve your financial goal, a well-structured financial plan is essential. Below is a detailed, step-by-step guide tailored to your current financial situation and aspirations.

Assess Your Current Financial Position
Annual salary: Rs 60 lakh
Home loan EMI: Rs 1.2 lakh per month
Car loan EMI: Rs 35,000 per month
This implies an annual EMI outflow of Rs 18.6 lakh. You must allocate your remaining income judiciously.

Emergency Fund
Build a fund covering 12 months of expenses.
Include EMIs, household expenses, and lifestyle costs.
Park this amount in a mix of liquid and ultra-short-term funds for safety.
Insurance Coverage
Life Insurance: Ensure you have a term insurance policy for adequate coverage. Coverage should ideally be 10–15 times your annual income.
Health Insurance: Opt for a comprehensive health insurance plan for your family.
Review existing LIC, ULIP, or investment-linked policies. Surrender such policies and reinvest in mutual funds for better returns.

Investment Strategy for Wealth Creation
1. Asset Allocation
Allocate your investments based on your risk tolerance and time horizon.
A 70:30 equity-to-debt ratio can balance growth and stability.
2. Equity Investments
Prefer actively managed mutual funds for wealth creation.
Actively managed funds have professional fund managers aiming to outperform benchmarks.
Regular investments through an MFD with a Certified Financial Planner (CFP) ensure disciplined investing.
3. Debt Investments
Invest in debt funds for stable returns and liquidity.
Avoid direct debt investments as they lack professional management.
4. Avoid Index Funds and ETFs
Index funds mirror market performance without aiming for higher returns.
Actively managed funds often outperform index funds in India.
Professional management in actively managed funds ensures better risk management.
Systematic Investment Plan (SIP)
Calculate your monthly SIP contribution needed to accumulate Rs 20 crore in 20 years.
Invest consistently in equity mutual funds for long-term growth.
SIPs offer rupee cost averaging and promote disciplined investing.
Managing Debt
Continue paying your home loan EMI as planned.
Avoid prepaying your home loan if the interest rate is reasonable.
For your car loan, avoid taking new loans after completion of the current one.
Tax-Efficient Planning
Equity Mutual Funds: LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.
Debt Mutual Funds: Gains are taxed as per your income tax slab.
Focus on tax-efficient investments to maximize post-tax returns.
Periodic Review
Review your financial plan every six months.
Ensure your investments align with your goals and risk tolerance.
Rebalance your portfolio if needed to maintain the desired asset allocation.
Lifestyle and Expense Management
Avoid unnecessary lifestyle inflation.
Focus on increasing savings and investments.
Create a monthly budget to track expenses and prioritize savings.
Additional Tips
Invest in your skills and career growth to boost income.
Explore alternative income streams for supplementary savings.
Stay disciplined and avoid emotional decisions during market volatility.
Final Insights
Accumulating Rs 20 crore in 20 years requires disciplined savings, tax-efficient planning, and a growth-focused investment approach. Work with a Certified Financial Planner to create and execute a customized financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Nayagam P

Nayagam P P  |4086 Answers  |Ask -

Career Counsellor - Answered on Feb 02, 2025

Asked by Anonymous - Feb 02, 2025Hindi
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Career
Sir I am a student of class 12.I am a JEE aspirant.I wish to study abroad if I cannot get a cs seat in a good iit, but I missed all the deadlines ( I got this idea recently).Is it ok to wait for a year and upgrade my skills to study at ucl in case I don't get into iit?
Ans: Have You Checked Your JEE (Main) Score? What’s Next?

By now, you have appeared for JEE (Main). Have you checked the answer key and assessed your score? Understanding where you stand will give you a clearer idea of your performance in JEE (Advanced).

Exploring Other Options:
IIT is not the only pathway to a great career in Computer Science. You can also consider other entrance exams or explore studying abroad.

Considering a Gap Year for Studying Abroad:

If you’re aiming for top universities like UCL but missed application deadlines, taking a gap year can be a strategic move. It allows you to:

1. Strengthen your academic profile (SAT/ACT, TOEFL/IELTS, subject tests)
2. Gain experience through internships, research, and open-source contributions
3. Improve your programming skills and competitive coding performance
4. Apply for better scholarships and multiple global universities

Challenges & How to Overcome Them:
A gap year requires discipline and planning. Challenges include:
1. Social expectations – Overcome doubts with a clear action plan
2. Staying productive – Engage in structured learning, internships, and projects
3. Financial planning – Research scholarships and funding opportunities

What You Can Do in a Gap Year?: 1. Retake JEE (if needed) 2. Prepare strong applications for international universities

If you secure a good CS seat in India, that’s a great option. However, if you wish to explore global opportunities, a well-planned gap year can help you gain admission to top institutions like UCL. All the Best for your Prosperous Future.

Follow RediffGURUS to Know More on 'Careers | Health | Money | Relationships'.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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