Hi Nikunj, I'm a 30 year old currently married with no kids.I want to accumulate a corpus of 50 lakhs for my kids education and marriage in 20 years. How much SIP needs to be done and pls suggest the funds

Ans: Hello Value Investor. The tenure of your past SIP investment is not mentioned. In order to achieve your target goal if you are starting investing this year, it is recommended to increase your monthly contribution to 70-75k.

Ans: Hello Value Investor. in order to achieve the corpus of 2 cr in next 10 years, you can start with 85k monthly sip.

Ans: Hello, assuming your shares grow by 12% cagr, the value of those will be Rs.5.47crs approx
You will need to start investing in SIP's an amount of Rs.50000 for the next 15 years to reach your target of 8crs

Ans: Investing with a goal in mind is much like planting a tree. The earlier and more diligently you nurture it, the stronger and more fruitful it grows over time. To aim for a 50 lakh corpus in 15 years, starting early and being consistent with your SIPs is key.

Considering the time horizon and your risk appetite, diversifying across different asset classes might be a wise strategy. It's a bit like cooking a balanced meal, where each ingredient plays a vital role in the overall taste and nutrition.

Remember, the journey of investing is as important as the destination. It's not just about the numbers but also about creating a financial discipline and understanding the markets. A Certified Financial Planner can guide you through this journey, helping you navigate the complexities and ensuring you stay on track.

So, let's embark on this journey together, nurturing your investments and watching them grow towards your goal.

Ans: Understanding Your Financial Goal
Age: 31 years
Target Corpus: Rs. 1 crore
Time Horizon: 20 years
Monthly Income: Rs. 60,000
Estimating Monthly SIP Investment
To achieve Rs. 1 crore in 20 years, a disciplined SIP is crucial. Let's estimate your monthly investment assuming an average annual return of 12%.

Monthly SIP Amount: Approx. Rs. 7,500 to Rs. 8,000
Expected Annual Return: 12%
Investment Duration: 20 years
Investment Strategy
Diversified Portfolio
Large-Cap Funds: Stability and steady growth
Mid-Cap Funds: Balanced risk and return
Small-Cap Funds: Higher returns but higher risk
Debt Funds: Stability in market volatility
Active Fund Management
Actively Managed Funds: Potential for higher returns
Fund Manager Expertise: Navigate market fluctuations
SIP Benefits
Power of Compounding
Long-Term Growth: Invested money grows exponentially
Reinvestment of Returns: Accelerates corpus accumulation
Rupee Cost Averaging
Regular Investments: Mitigates market volatility impact
Lower Average Cost: Beneficial in fluctuating markets
Regular Review
Periodic Portfolio Review
Every Six Months: Adjust based on performance
Rebalancing: Maintain desired asset allocation
Emergency Fund
Essential: Three to six months of expenses
Investment: High-interest savings account or liquid fund
Tax Efficiency
Tax-Saving Instruments
ELSS Funds: Tax benefits under Section 80C
Long-Term Capital Gains: Tax-efficient returns
Monitoring Expenses
Budget Management
Track Expenses: Identify savings opportunities
Allocate Wisely: Prioritize investments and essential expenses
Building Financial Discipline
Regular Investments
SIP Commitment: Ensure consistent investments
Financial Discipline: Key to achieving long-term goals
Final Insights
To achieve Rs. 1 crore in 20 years, start a SIP of Rs. 7,500 to Rs. 8,000 per month. Diversify your portfolio across large-cap, mid-cap, small-cap, and debt funds. Regularly review and rebalance your portfolio. Maintain an emergency fund and use tax-efficient instruments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in