I'm a 32 year old, and wish to generate 1.5 Cr in the next 5 years. Where should I need to invest. Already I'm equity dominated at 96%

Ans: Hello Deepak, thank you for writing to me. To create a corpus of Rs.5 Crore in the next 10 years, you need to invest around Rs.2.2 Lakh every month.

You can consider investing in:
1-Samco Flexicap Fund-Rs.55,000 per month.
2-Edelweiss Nifty 100 Quality 30 Index Fund-Rs.55,000 per month.
3-Axis ESG Fund-Rs.55,000 per month.
4-UTI MNC Fund-Rs.55,000 per month.

Stepping up your SIP by 10% or more every year will help you create a larger corpus over time.

Ans: Getting 1cr in 7 years assuming 12% CAGR will require you to either do an SIP of 78K a month or 45 lakhs as lumpsum. I suggest you should simply start an SIP & continue to invest for the next 7 years to reach your goal. If you are thinking of doing a lumpsum, invest in debt funds first & then do a weekly STP over the next 6 months into equity funds. Stick to MF's over trying to select direct stocks

Ans: A combination of debt and equity is needed. Debt can be in FD, POMIS, SCSS and SWP from debt funds. Equity can be in diversified equity funds. Approximately 70% can be in debt and 30% can be in equity in a retirement portfolio. In order to arrive at a specific asset allocation ratio and withdrawal plan, pls consult a financial planner.

Ans: To accumulate Rs 1 crore in 8 years, you'll need to invest regularly and choose appropriate investment options based on your risk tolerance and return expectations. Here's a general approach:

Calculate Required Investment Amount: Use a financial calculator or online investment calculator to determine how much you need to invest monthly or annually to reach your goal. Factors such as expected rate of return and compounding frequency will influence this calculation.

Select Suitable Investment Vehicles: Consider investing in a mix of equity mutual funds, debt instruments, and other asset classes to achieve your target. Equity investments typically offer higher returns over the long term but come with higher risk, while debt investments provide stability but lower returns.

Diversify Your Portfolio: Spread your investments across different asset classes and investment vehicles to reduce risk and maximize returns. This could include equity mutual funds (large-cap, mid-cap, and small-cap), debt funds, Public Provident Fund (PPF), and other tax-saving instruments.

Regularly Monitor and Review: Stay updated on the performance of your investments and make adjustments as needed. Rebalance your portfolio periodically to maintain the desired asset allocation and risk profile.

Consider Consulting a Financial Advisor: A certified financial advisor can help you create a personalized investment plan based on your financial goals, risk tolerance, and investment horizon.

Remember that achieving a target of Rs 1 crore in 8 years will require disciplined saving, prudent investing, and patience. By following a systematic approach and staying committed to your financial plan, you can work towards reaching your goal.

Ans: Given your long investment horizon of 18 years and the goal of accumulating substantial wealth for retirement, here are some considerations for deploying your 1 Cr investment:

Diversified Equity Mutual Funds: Consider allocating a significant portion of your investment to diversified equity mutual funds. These funds invest across various sectors and market capitalizations, providing exposure to the growth potential of the equity market while managing risk through diversification.
Large Cap Funds: Include large-cap funds in your portfolio for stability and consistent returns. These funds invest in well-established companies with strong fundamentals and track records, making them relatively less volatile compared to mid-cap and small-cap funds.
Mid Cap and Small Cap Funds: Allocate a portion of your investment to mid-cap and small-cap funds to tap into the growth potential of emerging companies. These funds have the potential to deliver higher returns over the long term, albeit with higher volatility.
International Equity Funds: Consider diversifying globally by investing in international equity funds. These funds provide exposure to overseas markets and sectors, offering opportunities for geographical diversification and potentially higher returns.
Systematic Investment Plan (SIP): Implement a systematic investment plan (SIP) approach to invest regularly over time, taking advantage of rupee-cost averaging and compounding benefits. SIPs can help smooth out market volatility and build wealth steadily over the long term.
Balanced Funds: Explore balanced funds, which invest in a mix of equities and debt instruments. These funds offer a balanced approach to risk and return, suitable for investors seeking capital appreciation with relatively lower volatility.
Regular Review and Rebalancing: Regularly review your investment portfolio and rebalance it as needed to ensure alignment with your financial goals, risk tolerance, and market conditions. Consult with a certified financial planner periodically to make informed decisions and adjustments.
Tax Planning: Consider tax-efficient investment strategies to optimize your returns and minimize tax liabilities. Explore options such as Equity Linked Savings Schemes (ELSS) for tax-saving purposes within the overall investment framework.
By diversifying your investment across different asset classes and investment vehicles, staying disciplined with your investment approach, and seeking professional advice when needed, you can work towards achieving your retirement goal of accumulating 8-10 Cr over the next 18 years.