Hi, I am 36 years old. I am investing 60k per month in mutual funds as of 2024 with 5%step up every year. I started investing since 2018 with 8k per month sip and gradually increased the amount every year till i reached 60k per month in 2024. My current mutual fund portfolio is 63 lakh with a cagr of 22%. (100% equity mutual fund with equal distribution in large ,mid and small caps) It touched 67 lakh last month but due to recent fall it has lost clode to 4 lakh in one month. I intend to continue invest 60k with 5% increment till i am 50 years old. I also have a stock portfolio of 35 lakh. Ppf- 12.30 lakh (investing 50k yearly) Epf- 15.71(2.4 lakh yearly employer and employee combined) Us stock portfolio - 10k usd(casual investment) Gold - 2.5 lakh(casual investment) Nps - 3 lakh(2.5 lakh tier 1 and 50k tier 2) investing 50k annually in nps tier 1. I want to accumulate 10 cr in next 14 years when i turn 50. Please guide me on the changes needed in my approach. Thanks, Jimmy

Ans: Please continue as planned; however, keep the expectation of returns between 12% and 15%.

Basic thumb rule is risk free returns (10 years govt bond returns) + inflation + equity risk premium

Ans: Hello Sukhvinder and thanks for writing to me. The funds you invest in are good funds and you can continue to invest in them.

Assuming that your investments grow at 12%, you will be able create a corpus of around Rs.1.7 Crore over 13 years. Stepping up your SIP's every year by 10% or more will help you create a larger corpus over time.

Ans: Dear Sukhvinder,

Thanks for asking about your financial goals. You have been investing INR 45,000 each month for the last three years and want to reach INR 3 crores in the next 10 years. Let's see if that's possible, considering your past investments.

Assuming you've earned an average return of 12% per year (which is a good estimate for a diverse set of investments), the amount you've already invested in the past three years should be around INR 21.6 lakhs. If you keep investing INR 45,000 each month for the next 10 years and continue to earn 12% per year, you'll have about INR 1.08 crores in 10 years. Adding the past investments to this amount, you'll have around INR 1.29 crores in total.

To reach your target of INR 3 crores, you'd need to earn around 23% per year, which is very high and not very likely. One way to get closer to your goal is to invest more each month. If you increase your monthly investment to INR 75,000 and still earn 12% per year, you could have around INR 1.80 crores in 10 years. Adding your past investments, you'll have about INR 2.01 crores in total. It's not INR 3 crores, but it's more realistic given the risks involved.

Your current investments include a mix of midcap, flexicap, large-cap, and hybrid funds, which is good. But it's important to keep an eye on how each fund is performing compared to others in the same category. If any of your funds aren't doing well, think about switching to better ones.

In the end, reaching INR 3 crores in 10 years might not be possible with your current investments and a 12% return. But by investing more each month and keeping your investments diverse, you can still build a good amount of savings. Make sure to review your investments regularly and make changes as needed.

Best of luck on your financial journey!

Warm Regards,
Hardik Parikh

Ans: Venkatesh! It's great to see your disciplined approach towards saving and investing. With your stable income and existing investments, adding Rs. 15,000 per month for 18-20 years can significantly boost your long-term wealth accumulation.

Considering your current portfolio, you may diversify further by adding funds from different categories to spread risk. Consider allocating the additional investment across different types of mutual funds such as mid-cap funds, small-cap funds, or international funds to enhance diversification.

As for stepping up your existing portfolio, you can consider increasing your SIP amounts gradually over time. Analyze the performance of your current funds and the potential for growth. Based on your risk tolerance and financial goals, you may consider increasing the SIP amounts in funds that have shown consistent performance and align with your investment objectives.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial situation and goals. Together, you can create a comprehensive investment plan to maximize returns and achieve your long-term financial objectives. Keep up the excellent work with your savings and investments!