Good Morning Sir,
I'm 24 years old and earning 20k per month, I started steup SIP of 1000 rupees on Tata Small cap Fund Direct growth from last 3 three months. I want to achieve around 10cr rupees by the age of 50-55 how can I achieve it, please suggest me.
Ans: It's great to hear about your commitment to financial planning at a young age. Building a corpus of 10 crores by the age of 50-55 is an ambitious yet achievable goal with disciplined savings and strategic investments. Here's a customized plan to help you reach your target:
Increase SIP Amount: Considering your current income of 20k per month, try to increase your SIP contributions gradually as your income grows. Aim to invest a higher amount each month to accelerate the growth of your investment portfolio.
Diversified Portfolio: While investing in Tata Small Cap Fund is a good start, consider diversifying your portfolio across different asset classes such as large-cap, mid-cap, and multi-cap funds to spread risk and optimize returns.
There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.
Long-Term Investment Horizon: Maintain a long-term investment horizon to benefit from the power of compounding. By staying invested for the long term, you can harness the potential growth of your investments and achieve your financial goals.
Regular Review and Rebalancing: Periodically review your investment portfolio to ensure it remains aligned with your financial objectives and risk tolerance. Rebalance your portfolio as needed to maintain the desired asset allocation.
Explore Additional Income Streams: Look for opportunities to increase your income through side hustles, freelance work, or skill development. Additional income streams can provide extra funds for investments, accelerating your journey towards your financial goals.
Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) who can provide personalized guidance and help you create a comprehensive financial plan tailored to your goals and circumstances.
Stay Disciplined and Patient: Building wealth takes time and requires discipline and patience. Stay committed to your savings and investment plan, and avoid impulsive decisions during market fluctuations.
With a disciplined approach to saving and investing, coupled with prudent financial planning, you can work towards achieving your goal of accumulating 10 crores by the age of 50-55.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in