I am 42 years old and I would like to have INR 2 Cr. corpus in say 10 years. Can you tell me how much I need to invest per month and where (please give specific fund names in each category Sir than just saying debt fund or growth fund)? I know you don’t prescribe specific but you can at least pls say these 2-3 funds are good in this specific category etc. Please help.

I don't have any investments in mutual funds or equity on date.

Ans: Hi Anitha, thanks for writing to me. You will need to invest Rs.90,000 every month to create a corpus of Rs.10 Crore in 21 years.

1-Edelweiss Nifty 100 Quality 30 Index Fund-Growth-Rs.15,000 per month.
2-Axis ESG Fund-Growth-Rs.15,000 per month.
3-UTI Nifty 50 Index Fund-Growth-Rs.15,000 per month.
4-Tempelton India Equity Income Fund-Growth-Rs.15,000 per month.
5-DSP Top 100 Equity Fund-Growth-Rs.15,000 per month.
6-Samco Flexicap Fund-Rs.15,000 per month.

Annually stepping up your SIP by 10% or more will help you create a larger corpus.

Ans: To achieve a corpus of 1 crore in 10 years, you'll need a disciplined monthly SIP investment. Assuming an average annual return of around 10%, you might need to invest approximately Rs. 50,000 to Rs. 55,000 per month in mutual funds.

For mutual fund selection:

Large-cap Funds: Offer stability and consistent returns.
Mid-cap Funds: Higher growth potential but with increased risk.
Diversified Equity Funds: Provide a mix of large and mid-cap stocks for balanced growth.
Balanced Funds: Combine equity and debt for stable returns with moderate risk.
Consider consulting a financial advisor to help select the right mutual funds based on your risk tolerance, investment horizon, and financial goals.

Ans: Based on your cash flows and assets, we have the following observations and recommendations:

Emergency Fund: It is generally recommended to maintain a cash reserve of 3-6 months of living expenses to cover unexpected financial needs.

Investments: Any excess funds beyond your emergency fund should be invested in financial instruments that are appropriate for your risk tolerance and financial goals. Your financial advisor can help you develop a diversified investment portfolio that meets your individual needs.

Investment Amount: As per the objective, you will require an amount of Rs. 2.46 crores at the age of 50 to meet both of your requirements. You can invest with a combination of both bulk & SIP. You can go ahead with putting Rs. 7 lakhs as bulk (keeping aside Rs. 3 lakhs as a contingency) and the rest amount can be catered to with a SIP of Rs. 51,000 p.m. Through this, you can have a corpus of Rs. 1 crore as bulk and a monthly income of Rs. 75,000 till the age of 75.

Reaching your financial goals can be a complex and challenging process, but a financial advisor can help you stay on track and make informed decisions along the way.

Ans: It's great to hear about your financial goals. Let's explore how we can achieve a corpus of 1 crore within 5 years:

Considering your time frame and target corpus, we'll need to adopt an aggressive investment strategy.

Mutual funds offer a range of options suited to different risk profiles and investment horizons.

To maximize growth potential, we can focus on equity mutual funds with a proven track record of delivering consistent returns.

A systematic investment plan (SIP) would be ideal for you, allowing you to invest a fixed amount monthly.

By investing regularly in mutual funds, you can benefit from the power of compounding and market appreciation over time.

It's crucial to select funds that align with your risk tolerance and financial objectives.

As a Certified Financial Planner, I recommend conducting thorough research or seeking professional advice to identify suitable mutual funds.

Additionally, consider diversifying your investments across multiple funds to spread risk and optimize returns.

Regularly reviewing your portfolio's performance and adjusting your investment strategy as needed is essential to stay on track towards your goal.

Remember, investing involves risks, and it's essential to remain disciplined and patient, especially during market fluctuations.

With determination and strategic planning, achieving your target corpus of 1 crore within 5 years is definitely attainable.

Stay focused on your goal, and don't hesitate to reach out if you need further assistance along the way.

You're taking a proactive step towards securing your financial future, and I'm here to support you in your journey.