Hi I want corpus of 1 cr in coming 10 yrs how much I need to save and where to invest?
Ans: To accumulate a corpus of â‚¹1 crore in 10 years, you will need to invest around â‚¹44,000/- per month, assuming a return of 12% per annum.
However, it is important to note that this is just a rough estimate. Your actual investment returns may vary depending on a number of factors, such as the type of investments you choose and the market conditions.
Let’s evaluate the popular investments option available in India to invest :-
• FDs: Poor returns and heavy losses due to taxation. Ultimately ‘negative’ post-tax-and-inflation returns.
• Insurance Policies: It is not at all a good choice for investment purposes. It has a small insurance component that your child doesn’t need and has bad investment options clubbed with it.
• Provident Funds: Reasonable returns but returns of about 7-8% per annum are not adequate to beat the way inflation and education costs are rising.
• Mutual Funds: Only equity (stock) based investments can meet your long-term wealth creation goal with compounding effect and a small 10% tax will still ensure your money grows in net terms. Equity Mutual Funds with a SIP facility would meet the requirement in the best manner. However, do check whether your risk profile matches equity investments.