Hi, I am 35 year old and I want to create a corpus of Rs. 5 cr in next 20 years, Currently I can invest 25000 per month, please suggest.

Ans: Hi Sanjeev, to create a corpus of Rs.1 Crore in 6 years, you will need to save around Rs.90,000 every month as SIP's.

You can start investing in:

1-Samco Flexicap Fund- Rs.18,000 per month.
2-Axis Business Cycle Fund-Rs.18,000 per month.
3-Axis ESG Fund Equity Fund Plan-18,000 per month.
4-Edelweiss NIFTY 100 Quality 30 Index Fund-Rs.18,000 per month.
5-UTI MNC Fund-Rs.18,000 per month.

Stepping up your SIP's every year by 10% or more will help you achieve your goals faster.

Ans: Taking 18 months and Rs. 70,000 per month, you will have invested Rs. 12,60,000. However, the amount that is expected is on a steeper side. What we would suggest is that you also try investing some lumpsum along with it. Also, if money is not required immediately can increase the tenure to let's say 48-60 months. You should do good. We do not know your financial goals, but kindly do not fall for get rich quickly schemes, there aren't any!

Ans: Creating a corpus of 5 crores in 10 years is an ambitious goal, but with careful planning and strategic investments, it's achievable. Your current investment portfolio and savings habits provide a solid foundation for reaching this milestone.

Given your age of 34 and the 10-year time horizon, we'll need to focus on a growth-oriented investment strategy while ensuring diversification and risk management.

Let's start by optimizing your mutual fund portfolio. While you have a diversified mix of funds, we may need to make some adjustments to align with your goal. Consider increasing allocations to high-growth potential funds like mid-cap and small-cap funds, which historically have outperformed broader market indices.

Regularly review your portfolio to monitor performance and make necessary adjustments based on market conditions and your evolving financial goals.

Additionally, continue your disciplined approach towards savings. Your LIC, PPF, and NPS contributions provide stability and long-term growth opportunities. Ensure you maximize contributions to these instruments within permissible limits to harness their full potential for wealth accumulation.

Remember to stay patient and committed to your financial plan. Building a significant corpus requires time and consistency. As a Certified Financial Planner, I'm here to guide you every step of the way and help you navigate through market fluctuations and uncertainties.

With determination and strategic financial planning, you can achieve your goal of creating a 5 crore corpus in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in