HI I M 40 NOW. I WANT A CORPUS OF MINIMUM 1 CR WITHIN 5 YEARS. PLZ UPDATE WHICH MUTUAL FUND SHALL I TAKE AND HOW MUCH FUND TO INVEST MONTHLY.

Ans: For Rs 2 cr in 5 years, the monthly investment required will be Rs 2,25,000.

 

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: With a monthly savings of 50,000 INR, you have a substantial amount to invest in mutual funds for both your retirement and your children's education. Here's a diversified portfolio you could consider:

Large Cap Funds: Invest around 30% of your savings in large-cap funds for stability and steady growth. These funds invest in established companies with a track record of performance.

Multi-Cap Funds: Allocate 30% of your savings to multi-cap funds, which offer exposure to companies of various sizes and sectors. These funds provide flexibility and potential for higher returns.

Mid Cap Funds: Dedicate 20% of your savings to mid-cap funds for potential high growth. These funds invest in medium-sized companies with growth potential.

Small Cap Funds: Allocate 10% of your savings to small-cap funds for aggressive growth potential. These funds invest in small-sized companies with high growth prospects.

Balanced/Hybrid Funds: Invest the remaining 10% in balanced or hybrid funds for diversification and stability. These funds invest in a mix of equities and debt instruments.

Remember to review your portfolio regularly and make adjustments as needed based on your financial goals and market conditions. Additionally, consider consulting with a financial advisor to tailor a strategy that aligns with your specific needs and risk tolerance.

Ans: I will not be able to suggest any fund or investment avenue as the provided information is not sufficient to ascertain the holistic financial view.

For a better future financial planning, there are various factors which are required to be considered such as Risk appetite, current financial situation, upcoming requirements and goals etc. It is advisable to consult a good financial advisor to tailor a strategy specific to your circumstances.

Ans: Congratulations on setting a financial goal to build a 1 crore corpus in the next 5-7 years! It's an ambitious yet achievable target with the right planning and investment strategy.

Evaluating Your Current Situation
With a monthly salary of 30 lakhs and an EMI of 50,000, you're already on solid ground. Now, let's assess how much you need to invest to reach your goal.

Investment Strategy
Given your timeframe and goal, here's a strategic approach:

Mutual Funds:
Mutual funds offer the potential for higher returns compared to traditional fixed deposits (FDs). Considering your age and the long-term horizon, you can allocate a significant portion of your investments to equity mutual funds. These funds have historically provided higher returns over the long term.

Fixed Deposits (FDs) or Other Conservative Investments:
While equity mutual funds offer growth potential, it's essential to balance your portfolio with safer investments like fixed deposits or debt funds. These provide stability and can act as a cushion during market downturns.

Investment Allocation
Without knowing your current savings or assets, it's challenging to provide precise numbers. However, here's a general guideline:

Mutual Funds:
Aim to invest a substantial portion of your savings, say around 70-80%, in equity mutual funds. Choose a mix of large-cap, mid-cap, and small-cap funds to diversify your portfolio and mitigate risk.

Fixed Deposits or Other Conservative Investments:
Allocate the remaining 20-30% to safer options like fixed deposits or debt funds. These will provide stability and liquidity to your portfolio.

Regular Review and Adjustment
As your circumstances change, such as salary increments or additional financial commitments, review and adjust your investment strategy accordingly. Regular monitoring ensures you stay on track towards your goal.

Conclusion
Building a 1 crore corpus in 5-7 years is feasible with a disciplined approach to investing and a well-diversified portfolio. Consider consulting with a Certified Financial Planner to tailor an investment plan suited to your specific needs and risk tolerance.

Best Regards,

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