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37-Year-Old New Investor Aims to Accumulate 5 Cr in 10 Years, Needs 1 Cr in 3 Years: Milind's Advice

Milind Vadjikar |1102 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Oct 16, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more

Asked by Anonymous - Oct 16, 2024Hindi

Hi Milind,I am 37 years and in a position to invest 1.4L per month in MF and have the below allocation. Can you please advise if the below looks fine? I am just starting to invest in MF for the 1st time and looking to accumlate 5 Cr in 10 years and use this to pay off home loans and personal loans in 3 years time with corpus of 1 Cr.What would be required to reach 1 Cr in 3 years? Please review the below MF and do recommend any changes as I will be able to invest heavily in those. 1.Small Cap - Quant (30K) 2.Mid Cal - Motilal Oswal (20K) 3.Large Cap - ICICI Prud Bluechip (20K) 4.Flexi Cap - PPFAS (30K) 5.Contra - SBI (20K) 6.Multi Cap - Nippon (20K)

Ans: Hello;

For getting 1 Cr in 3 years you may to increase monthly SIP amount to 2.4 L.

Else with the current monthly SIP of 1.4 L you may need 5 years to reach target of 1 Cr to pay off your loans.

Also for 5 Cr corpus target in 10 years you have two options top-up monthly sip of 1.4 L by 11% minimum each year upto 10 years.(After finishing 1 Cr target in 3/5 years)
Or
Do a flat monthly SIP of 2 L for 10 years.

Coming to your fund portfolio, I recommend the following:

1. PPFAS flexicap fund: 30 K
2. ICICI Pru Bluechip fund: 30 K
3. Motilal Oswal Midcap fund: 20 K
4. Nippon India Small cap fund: 20 K
5. ICICI Pru Value Discovery fund: 20 K
6. SBI Technology Opportunities Fund: 20 K

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Asked on - Oct 16, 2024 | Answered on Oct 16, 2024

Hi Sir, thank you so much for the comments and fund repositioning. I will proceed further with the recommended changes and trust no review of portfolio would be required for a foreseeable future. Thanks a lot as this clears my confusion around the multiple choices of funds availability and inability to decide.

Ans: You are most welcome!

Also you MUST review performance of your fund portfolio just to ensure that growth is moving in the right direction.
Ultimately your hard earned money is at stake.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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