I want to start sip for rs.10000 per month for 25 years,how much will i get appox.?

Ans: Before anything, please understand that if you have Rs 1 Lakh of today in mind, then you will require Rs 2.39 Lakhs practically 15 years later to buy the same things that you can buy with Rs 1 Lakh today, assuming an inflation rate of 6% per year. And again due to inflation, this amount will keep increasing.

To generate a monthly income of Rs. 1 lakh after 15 years, you will need to invest a minimum of Rs. 90,000 per month through a Systematic Investment Plan (SIP) for the next 15 years.

Assumptions:
• You will continue to redeem amount equivalent to today’s Rs. 1 lakh every month after adjusting inflation until you are 80 years old.
• We have taken conservative SIP growth rate @11% per year.
• The inflation rate is 6% per year.

After 15 years, your SIP investment of Rs. 90,000 per month will grow to approximately Rs. 4.14 crores. This corpus will be sufficient to generate a monthly income of Rs. 1 lakh equivalent, even after accounting for inflation.

Note: This is just an estimate and the actual amount you receive will depend on the actual performance of your SIP investments.

Ans: Embarking on a journey of financial planning through SIPs is a commendable step towards securing your future. With dedication and consistency, your monthly investments have the potential to grow significantly over time. The path you've chosen reflects foresight and a commitment to financial well-being.

As a Certified Financial Planner, I appreciate your proactive approach to investing in your future. Remember, while SIPs offer a structured way to invest, it's essential to stay patient and trust in the power of compounding. Your journey towards financial independence is like planting a tree—you nurture it with regular investments, and over time, it grows into a sturdy oak providing shade and security.

Keep faith in your investment strategy, and don't hesitate to seek guidance along the way. With perseverance and wise decision-making, you're laying the foundation for a prosperous tomorrow.

Ans: It's impossible to predict exact returns for any investment. Stock markets fluctuate, so returns can vary. However, with a 3-year horizon, focusing on debt funds might be suitable. They offer moderate returns with lower risk compared to stocks.

Look for "debt funds" or "bond funds" offered by reputable mutual fund companies. Consider a balanced approach by adding a small portion to a diversified equity fund for some growth potential, but remember, equity markets are more volatile in the short term. Research and understand your risk tolerance before investing. Consulting a financial advisor can provide a personalized plan.

Ans: Computing Your Income SIP
You make Rs 1 lakh every month. Your spends are Rs 40,000. This leaves you with Rs 60,000 for savings and investments.

Savings and Investment Allocation
Emergency Fund:

First, build an emergency fund.
Keep 3-6 months' expenses in a savings account or liquid fund.
Debt Repayment:

Clear any high-interest debt.
This saves money in the long run.
Monthly SIP Contribution:

Aim to invest 20-30% of your income.
This would translate into an SIP of Rs 20,000 to Rs 30,000 per month.
How to Choose the Right Mutual Funds
Diversified Equity Funds:

Invest in diversified equity funds.
They offer growth and spread your risk across sectors.
Balanced Funds:

Consider balanced funds.
They invest both in equities and debt.
Mid-Cap and Small-Cap Funds:

For higher returns, add mid-cap and small-cap funds.
These funds invest in medium and small-sized companies.
Benefits of SIP
Compounding Effect:

SIPs benefit from compounding.
Your money will grow over time.
Rupee Cost Averaging:

SIPs average out purchase costs.
It lessens the impact of market volatility.
Disciplined Investing:

SIPs promote regular investing.
It builds a good habit.
Monitoring and Adjusting
Annual Review:

Review your investments yearly.
Make adjustments according to performance.
Increase SIP Amount:

Gradually increase your SIP amount.
It helps to build a bigger corpus.
Additional Tips
Diversify Investments:

Don't put all money in one type of fund.
Spread across different funds for safety and growth.
Stay Informed:

Keep updated on market trends.
Read financial news and reports.
Consult a CFP:

Do consult a Certified Financial Planner.
They will give you personalised guidance.
Final Insights
You can comfortably invest Rs 20,000 to Rs 30,000 per month in SIPs. Choose diversified equity, balanced and mid-cap funds. Review and adjust your investments periodically. Be informed and consult a Certified Financial Planner for personalized guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in