My age is 47 year. i need 2 Cr at the age of 60. Please let me know, good mutual fund as well as investment amount (monthly)?

Ans: Building a Corpus of Rs. 2 Crores by Age 60
As a Certified Financial Planner, I understand your goal of accumulating Rs. 2 crores by the age of 60. Achieving this target requires a strategic approach to investment planning, considering your current age, risk tolerance, and investment horizon.

Assessment of Investment Horizon and Risk Profile

At 47 years old, you have approximately 13 years until you reach your target age of 60. This timeline allows for a moderate to aggressive investment strategy, considering the long-term horizon and potential for higher returns.

Selection of Mutual Funds

Given your investment horizon and the goal of accumulating Rs. 2 crores, it's crucial to select mutual funds that offer a balance of growth potential and risk management. Here are some considerations:

Equity Funds: Equity funds have historically delivered higher returns over the long term compared to debt funds. Considering your goal and time horizon, allocating a significant portion of your investment towards equity funds is advisable.

Diversification: Opt for a mix of large-cap, mid-cap, and multi-cap equity funds to diversify your portfolio and mitigate risks associated with specific market segments.

Consistency of Performance: Evaluate mutual funds with a track record of consistent performance over different market cycles. Look for funds managed by experienced fund managers with a disciplined investment approach.

Determining Investment Amount

To accumulate Rs. 2 crores by age 60, you need to determine the monthly investment amount based on factors such as expected rate of return and investment duration. Here's a general approach:

Expected Rate of Return: While past performance is not indicative of future results, historical data suggests that equity mutual funds have delivered an average annual return of around 12% to 15% over the long term. Considering your goal and risk profile, aiming for an average annual return of 12% is reasonable.

Investment Duration: With a 13-year investment horizon, you have the advantage of compounding returns over a relatively long period. Regular monthly investments can harness the power of compounding and help you achieve your target corpus.

Monthly Investment Amount: Using financial calculators or consulting with a Certified Financial Planner can help determine the monthly investment amount required to reach Rs. 2 crores by age 60, considering the expected rate of return and investment duration.

Monitoring and Review

It's essential to monitor your investments regularly and review your portfolio's performance to ensure it remains aligned with your financial goals and risk tolerance. Periodic rebalancing may be necessary to maintain the desired asset allocation and manage risk effectively.

Conclusion

By investing strategically in mutual funds with a focus on equity funds and adopting a disciplined approach to regular monthly investments, you can work towards accumulating Rs. 2 crores by age 60. Remember to review your investment strategy periodically and make adjustments as needed to stay on track towards achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in