Hi, I am LY,aged 41 yrs & want to have corpus of around 2cr in next 20yrs. currently i have invested in DSP tax saver fund- regular plan growth-50k, ICICI prudential flexi cap fund growth-5k monthly, Bandhan flexicap fund growth regular plan-2500 montly,Mahindra manulife large and midcap fund regular growth-3k monthly,FNGP- uti floater fund regular plan-1500 monthly,MCGP-UTI mid cap fund regular plan 3500 montly & Nippon India Growth fund-2lac & in same 3k monthly, My current value of investments is 11.50 lac & i want to start more 10k monthly. Please advise how much more investments to be made for 2cr corpus in next 20 years n which funds?

Ans: You would be required to make Rs. 80,000/- monthly investment in equity mutual fund for 10 years to create a corpus of Rs. 2 crs.

Ans: With Rs. 22500 SIP a corpus of Rs. 3 cr can be created in 22 years.

Additionally, with 18K NPS / VPF / RD Rs. 1 crs corpus will get created

Hence nearly Rs. 4 crs corpus will get created with current investment

Ans: Assessment and Recommendation for Achieving a Corpus of Rs. 2 Crores in 20 Years:

Current Investment Portfolio Review:

Your existing portfolio demonstrates a proactive approach towards wealth accumulation, reflecting a mix of equity, hybrid, and debt funds.
Investments in tax-saving funds like DSP Tax Saver Fund and diversified equity funds like ICICI Prudential Flexi Cap Fund exhibit a focus on long-term growth potential.
However, it's essential to assess the adequacy of your current investments and determine additional contributions required to achieve your target corpus of Rs. 2 Crores in 20 years.
Analysis of Additional Investments Required:

Given your current investment value of Rs. 11.50 Lacs and an investment horizon of 20 years, you need to calculate the required monthly SIP amount to achieve your target corpus.
Considering an assumed annualized return rate based on historical performance of mutual funds, you can estimate the monthly SIP required to reach your goal.
It's crucial to consider factors such as inflation, investment expenses, and market volatility while determining the additional investments needed to achieve your financial objective.
Recommendations for Asset Allocation and Fund Selection:

Given your age and investment horizon, maintaining a predominantly equity-oriented portfolio with a long-term perspective is advisable to maximize growth potential.
Allocate a higher proportion of your investments to equity funds, preferably diversified across market capitalizations and sectors, to capitalize on growth opportunities.
Consider adding exposure to mid-cap and small-cap funds for potential higher returns, but be mindful of the associated volatility.
Incorporate debt funds to provide stability to your portfolio and mitigate risk, especially as you approach your financial goal.
Financial Planning and Goal Setting:

Utilize online SIP calculators or consult with a Certified Financial Planner to determine the exact monthly SIP amount required to achieve your target corpus of Rs. 2 Crores in 20 years.
Review your investment strategy periodically and make necessary adjustments based on changing market conditions, financial goals, and risk tolerance.
Stay disciplined with your investment approach and avoid making impulsive decisions, keeping your long-term financial objectives in mind.
In conclusion, by systematically increasing your monthly SIP contributions and maintaining a well-diversified portfolio aligned with your risk profile and investment horizon, you can work towards achieving your target corpus of Rs. 2 Crores in 20 years.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Your journey of investing, starting with a modest amount and gradually increasing over the years, is commendable and reflects discipline and commitment. Your current portfolio, consisting of mid-cap, large-cap, and gold savings funds, provides a blend of growth-oriented and defensive assets.

To achieve a corpus of Rs 1 Crore in the next 20 years, it's essential to maintain a balanced approach between growth and stability. While your current funds have their merits, consider diversifying further to potentially enhance returns while managing risk.

Regular reviews with a Certified Financial Planner can help assess your portfolio's alignment with your long-term goals and market conditions. With disciplined investing and periodic reviews, you can navigate the investment landscape with confidence, aiming to reach your financial milestone.

Remember, investing is a journey of patience, resilience, and continuous learning. Embrace this journey with confidence and commitment, and may your investments flourish over the years, paving the way towards achieving your financial aspirations.

Ans: – You are already saving with discipline.
– Your FD and RD show safety-first thinking.
– Your SIP and stock investments show growth mindset.
– You have started early. At 33, 20 years is a powerful runway.
– You are balancing risk and safety. This is very good for a stable future.

» Assessing your present financial picture
– Monthly income is Rs. 35,000.
– FD corpus is Rs. 8 lakhs.
– RD of Rs. 6,000 per month.
– Direct stocks Rs. 2,000 per month.
– Mutual fund SIP Rs. 5,000 per month.

This shows about Rs. 13,000 monthly savings. This is roughly 37% of your income. That is excellent. You are already ahead of many people.

» Your target of Rs. 2 crores in 20 years
– Rs. 2 crores in 20 years is a very reasonable target.
– You have a good time frame.
– Power of compounding can help you reach or exceed it.
– The key is not just saving but putting money in the right growth instruments.
– You need right asset mix and review every year.

» Where you are now in relation to the goal
– You have safe money in FD and RD. These give lower growth.
– You have growth money in mutual funds and stocks. These give higher growth.
– To reach Rs. 2 crores, your overall portfolio must tilt towards growth.
– Keeping too much in FD for long may slow your compounding.

» Insights on current instruments
– Bank FD is safe. But long-term returns may not beat inflation.
– RD is similar to FD. It is good for short-term savings, not long-term wealth.
– Direct stocks can grow but they need research, monitoring, and can be volatile.
– Mutual fund SIP in well-managed funds is a strong wealth builder.

» On mutual fund style
– Please avoid direct funds. Many people think direct is cheaper.
– But regular funds through a trusted MFD with a CFP give advice, allocation, and review.
– Direct funds give no handholding. In bad markets, panic can destroy returns.
– Long-term wealth comes not from lowest cost, but from disciplined right action with guidance.

» On index funds
– Index funds only copy the market. They never aim to beat it.
– They cannot protect during market crash.
– They invest in both good and bad companies equally.
– Actively managed funds can avoid weak sectors and poor stocks.
– Good active funds with CFP support give better long-term growth.

» Right asset mix for your goal
– For 20 years, equity should be major. Debt can be minor.
– You can keep around 70% in equity funds.
– Around 20% in hybrid or balanced advantage type.
– Around 10% in debt or liquid for emergencies.
– This keeps growth, while controlling risk.

» Your step-by-step action plan
– Keep emergency fund of 6 months expenses in FD or liquid fund.
– Shift long-term FD savings slowly into good equity mutual funds.
– Continue SIP in multiple good mutual funds. Increase every year.
– Slowly reduce direct stock buying unless you have deep interest and time.
– Keep RD for short-term goals only. Do not rely on it for wealth creation.
– Review funds with a CFP once a year. Stay on track.

» Importance of increasing SIP yearly
– Start with Rs. 5,000 SIP. But try to increase by 10–15% every year.
– Even small increases create huge effect in 20 years.
– Compounding works best when both capital and time grow together.

» Taxation to keep in mind
– New capital gains tax rules are important.
– For equity mutual funds: LTCG above Rs. 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– For debt funds: gains taxed as per your slab.
– Proper planning can reduce tax impact through staggered withdrawal.

» Risk management
– Get a term insurance cover if not already done.
– Cover should be at least 15–20 times your annual income.
– Take adequate health insurance for self and family.
– This protects your savings from medical or other risks.

» Behavioural discipline is key
– Do not stop SIPs in bad markets.
– Do not chase recent best performers.
– Stay with your chosen plan through ups and downs.
– Time in the market beats timing the market.

» How your Rs. 2 crore goal can be achieved
– With consistent SIPs, annual increase, and growth-focused funds, Rs. 2 crores is realistic.
– Even if markets fluctuate, disciplined investing over 20 years averages out returns.
– Keep patience. Avoid panic withdrawals.
– Review, rebalance, and stay invested with proper guidance.

» Finally
– You are already on the right path.
– You have time, discipline, and willingness.
– With the right mutual fund strategy, yearly step-up, and good protection cover, you can cross Rs. 2 crores.
– Stay focused on asset mix, not just product names.
– Wealth building is a marathon. Keep moving, keep reviewing, keep improving.
– The future is in your favour if you stay steady now.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment