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: 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!

Ans: It's great that you're actively saving and investing for your future. However, to achieve your goal of accumulating ?2 crore by the time you're 60, you may need to adjust your investment strategy and consider a few factors:

Emergency Fund: It's crucial to have an emergency fund to cover unexpected expenses, such as medical emergencies or job loss. Aim to save at least 3-6 months' worth of living expenses in a liquid and easily accessible account.

Investment Allocation: While investing in mutual funds, consider diversifying your portfolio across different asset classes such as equity, debt, and hybrid funds to manage risk effectively. Also, review your investment choices periodically to ensure they align with your goals and risk tolerance.

Increasing Investments: To reach your target of ?2 crore by age 60, you may need to increase your monthly investments. Consider using a financial calculator or consulting a financial advisor to determine the monthly contribution required based on your expected rate of return and time horizon.

Passive Income Sources: Explore passive income streams such as rental income from real estate properties, dividends from stocks or mutual funds, or interest from fixed deposits or bonds. These sources can provide additional income without requiring active involvement.

Financial Planning: Consider consulting with a certified financial planner who can help you create a comprehensive financial plan tailored to your goals, risk tolerance, and financial situation. They can also provide guidance on optimizing your investments and achieving financial security.

Remember, achieving long-term financial goals requires discipline, patience, and periodic review of your financial plan. By making informed decisions and staying committed to your goals, you can work towards building a secure financial future.