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Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Feb 20, 2020

Karthik Question by Karthik on Feb 20, 2020

I have a guaranteed job and a stable income for the next 12 years. Thus I want to generate Rs 1 crore by the end of 12 years for buying a home and to have some surplus money. I am currently investing 30000 per month (half my take home salary) in mutual funds. Please tell me if my current investments will enable me to achieve this target.

Name of the Fund Category RankMF Star Rating
Karthik Deep    
1. ICICI Prudential Bluechip Fund- 5000 Equity - Large Cap Fund: 2
2. L&T Midcap Fund- 5000 Equity - Mid Cap Fund: 3
3. L&T Emerging Businesses Fund- 5000 Equity - Small Cap Fund: 1
4. SBI Magnum Multicap Fund- 10000 Equity - Multi Cap Fund: 4
5. Axis Bluechip Fund- 5000 Equity - Large Cap Fund: 5
Ans: 30000 per month is sufficient for creating wealth of Rs. 1 cr in 12 years. Few top funds are listed below for your consideration.

Equity - Value Fund:

  • Tata Equity PE Fund - Growth
  • UTI Value Opportunities Fund - Growth Plan

Equity - Multi Cap Fund:

  • UTI Equity Fund – Growth
  • Axis Multicap Fund – Growth

Equity - Large Cap Fund:

  • UTI Mastershare Unit Scheme - Growth Plan
  • LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

  • MOSL Midcap 30 Fund – Growth
  • DSP midcap – growth

Equity - Small Cap Fund:

  • Kotak Small Cap Fund – Growth
  • Axis Small cap Fund - Growth

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Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 19, 2023

Hello Sir, Myself Krishna. I am 45 years salaried. I am investing in MF from last 5 years. Currently the MF amount has grown to 20 Lakhs. I am investing around 15K in MF per month. I have invested around 5 Lakh in Indian stocks. I have an FD amount of 30 Lakhs. Apart from this I have invested around 60 Lakh in gold. I have Epf and PPF amount of about 25 Lakhs. I have invested in real estate ( 4 houses, 2 flats and 4 plots) in Bangalore. I want around 5 crores for my child education and for retirement. With my current investment, will I will be able to achieve my goal of 5 crores in the next 10-12 years.
Ans: Hello Krishna,

It's great to see that you've been actively investing and diversifying your investments across various asset classes. You have done a good job of creating a robust investment portfolio. Let's take a look at your current investment and assess whether you can achieve your goal of 5 crores in the next 10-12 years.

As of now, you have:

Mutual Funds (MF) - ₹20 lakhs
Indian Stocks - ₹5 lakhs
Fixed Deposits (FD) - ₹30 lakhs
Gold - ₹60 lakhs
EPF & PPF - ₹25 lakhs
Real estate investments (4 houses, 2 flats, and 4 plots)
In addition to this, you are investing ₹15,000 per month in MFs.

To estimate whether your current investments will help you reach your goal of ₹5 crores in the next 10-12 years, we need to consider factors like inflation, average returns, and your risk appetite.

Assuming you're investing in a well-diversified MF portfolio, it's reasonable to expect an annualized return of around 12% on your MF investments. Considering the same rate of return, your monthly investment of ₹15,000 could grow to approximately ₹33 lakhs in the next 10 years.

Based on historical returns, we can assume an annualized return of around 7% for your FDs, 12% for your stocks, and 8% for your gold investments. Your EPF and PPF investments might provide an average return of around 8%. However, real estate returns are harder to predict as they vary significantly depending on the location and market conditions.

Assuming average returns, your current investment could grow to approximately ₹3.5 crores in the next 10 years, excluding real estate. Including real estate returns is difficult due to the unpredictable nature of the market, but it could potentially help you reach closer to your ₹5 crores goal.

It is important to review and adjust your investment strategy periodically to ensure that you're on track to achieve your financial goals. You may want to consider increasing your monthly MF investments or reallocating your portfolio to achieve better returns. It's always a good idea to consult a professional financial advisor to discuss your financial plan and strategies tailored to your specific needs.

I hope this helps, and I wish you all the best in your financial journey!

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 11, 2023

Dear Sir, Iam 51 and I have been investing in diversified mutual funds since last 10 years and accumulated around Rs 1.28 Crores and continuing SIP's in following funds. Quant Large cap - Rs 9000, SBI Health care fund - Rs 5000, UTI Flexi cap fund - Rs 5000, Kotak Flexi cap fund - Rs 13000, Mirae asset hybrid equity fund - Rs 8000. I have also accumulated corpus of Rs 13 lakhs in NPS tier 1 and doing SIP of Rs 5000 every months. Further i have combine corpus of Rs 43 Lakhs in EPF and PPF accounts. I have invested Rs 4.72 Lakhs in 20 Year bonds of HUDCO, PFC tax free bonds in 2013 and receiving Rs 42000 every year as interest. I want to have Rs 50000 every month from the above from next year. I will try to continue SIP's till next 2-3 years from other expected incomes from parents.Iam also getting Rs 15000 per month as rent and do not have nay debt.
Ans: Dear Srinivasa,

First of all, congratulations on your disciplined investment approach over the past decade. You have built a considerable corpus that should serve you well in the coming years.

Based on the information you provided, you currently have:

Mutual Funds: Rs 1.28 Crores
NPS (Tier 1): Rs 13 Lakhs
EPF and PPF: Rs 43 Lakhs
HUDCO and PFC Bonds: Rs 4.72 Lakhs (Rs 42,000 annual interest)
Rental Income: Rs 15,000 per month
Your goal is to generate Rs 50,000 per month starting next year.

Here's a suggested plan:

Continue your SIPs in mutual funds for the next 2-3 years, as you mentioned. This will help your corpus grow even further.
Utilize the interest income from the HUDCO and PFC bonds (Rs 42,000 per year) as a part of your desired Rs 50,000 per month. You can reinvest the interest income in a liquid fund or a short-term debt fund to ensure its availability when needed.
You can consider allocating a portion of your mutual fund corpus to a Systematic Withdrawal Plan (SWP) in order to generate the remaining monthly income needed. Assuming you require Rs 50,000 per month (Rs 6 Lakhs per year), you can use a small portion of your Rs 1.28 Crores corpus to fund this. Start the SWP next year to meet your monthly income requirement.
Your rental income of Rs 15,000 per month will serve as an additional source of income, which can be used to cover any unforeseen expenses or to reinvest in your portfolio.
It's advisable to keep your EPF and PPF investments intact until maturity, as they provide a safe and tax-efficient option for long-term wealth creation.
Please remember that the above plan is only a suggestion, and you should consult with a certified financial planner to create a personalized plan based on your specific financial situation and goals.

Wishing you the best in your financial journey.

Warm regards,
Latest Questions

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

Asked by Anonymous - Jun 02, 2023
I am a 45 years old Indian living in the US for the past 10 years with the family. Despite having a steady job and a pay which typically is considered high, I end up spending more than my income. My wife also works full time with good pay as well but she thinks it's my responsibility to provide and she just saves all her money in her own accounts. We have multiple properties on both our names including cars but only I pay. I pay for groceries, bills, travel everything. On discussing about the expenses, which I have done multiple times so far, she says I should be ashamed to expect money from a woman. If this continues, I will reach retirement age kind of broke I feel. Also, I will spend sleepless nights thinking about finances until then. Please advice.
Ans: Dear Anonymous,
Like in any partnership, marriage is one such partnership where everything is usually shared. But I do know of couples, where they mutually agree that one partner takes care of the bills and the other education etc.
In your case, your wife has been saving up and you have been bleeding dry of your finances.
But why exactly are you spending more than your income? Financial mismanagement? Maybe that's why your wife is worried that it might happen to her portion of the income too?
Having said that, I guess your wife also needs to move past the belief that the Man is solely responsible for bringing money home. By that logic, she should never have worked, right?

Since she is working as well, she can contribute towards the family to the extent it can help but it is also imperative that as a woman she keeps some finances saved as a back-up for herself. It provides a good safety blanket for a woman since she possibly feels that you are spending more than what you earn.
It's up to you to bring about the subject without her feeling that you are out to spend all her money. So, you really need to start with managing your finances better...I am sure things will get better from thereon...

All the best!

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

Hi Anu, I hope you're doing well. I'm a 24 year old girl working as a software engineer. I was in love with a boy in long distance relationship and I met him only once. We both had great understanding, respect on each other. It was all good between us. On February 2023, he called me one day saying that he wants to tell his parents about our love matter. I said okay and asked him what he wanted to do if his family disagrees. He said that he'll wait until his family approves. I was okay with it and he informed to his family. But things started changing after he talked with his family. He wanted to break up with me. I told him many times that I wanted to be with him and don't want to break up. But, he didn't agree. Eventually, we stopped talking with each other. It was hard for me to move on but after few months, i finally decided to move on with my life. Then suddenly he messaged me saying that he wants to get back with me. I didn't agreed as I lost my trust on him. He even informed his family about getting back with me and they were okay with it. He wants to marry me. But, now the problem is I still like him, but I lost trust in him. I wanted to give him a chance but I'm afraid because of past break up with him. I'm confused about what should I do? Anu, can you please suggest me about giving him a chance or moving on with my life?
Ans: Dear Mahi,
Thank you for asking. I am doing well and trust that you too will be in the same space as well.
When what he has done has broken your trust, it is difficult to get it back... he has come back, but you are perhaps thinking: what if he pulls the same stunt again? And this makes you question every move of his...

If you look at it from his point of view, he possibly also loves you but his family pressures are getting to him and he can do only that much. Yes, it would have been more 'human' to talk to you about what had happened after he spoke with his family. But he chose not to and that lack of transparency is what has thrown you off...perhaps, he isn't all that mature emotionally or feels that he might lose you if he shares anything.

Whatever it is, your loss of trust on him is justified after the way he had behaved. If the two of you still want to give your relationship a chance, kindly do so...and clearly state to him that you have lost trust on him. Not only does he have explaining to do but he must reassure you that he will be honest with you in future. Also, give some time before committing to a marriage while you watch whether he has changed and he is consistent with what he has committed to changing. Only when you are sure, take a decision either way!

All the best!

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.


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