Sir Iam31yrs I want to make corpus of 1crore in20years how much money I should invest through sip my monthly income is 60 k per month

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: To accumulate 5 crore in 5 to 6 years through SIPs, you'd need to invest a substantial amount monthly. Assuming an annual return of 12%, you'd need to invest around 4 to 4.5 lakh per month. However, this is a significant commitment and may not be feasible for everyone. It's essential to assess your risk tolerance, financial situation, and investment goals before committing to such a high amount. Additionally, consider diversifying your investments across different mutual funds or asset classes to mitigate risk. Consulting with a financial advisor can provide personalized guidance based on your circumstances.

Ans: You aim to build a Rs. 4 crore corpus in 8 years. Your annual income is Rs. 9 lakhs. This requires strategic planning and disciplined investments in mutual funds.

Systematic Investment Plan (SIP) Strategy
SIP is a disciplined way to invest. It helps in averaging the cost and mitigating market volatility.

Suggested Mutual Fund Categories
Large Cap Funds

These funds invest in large, established companies.
They offer stability and steady returns.
Ideal for risk-averse investors.
Flexi Cap Funds

Flexi Cap funds invest across large, mid, and small caps.
They provide a balanced approach to growth and stability.
Suitable for moderate risk takers.
Mid Cap Funds

Mid Cap funds invest in medium-sized companies.
They offer higher growth potential but come with higher risk.
Good for aggressive investors.
Small Cap Funds

Small Cap funds invest in smaller companies.
They have the highest growth potential but also the highest risk.
Best for very aggressive investors.
Suggested Investment Approach
Diversify Your Investments

Invest in a mix of Large Cap, Flexi Cap, Mid Cap, and Small Cap funds.
This diversification balances risk and return.
Increase SIP Amount Gradually

Start with an affordable SIP amount.
Gradually increase it as your income grows.
This boosts your investment corpus over time.
Avoid Index Funds and Direct Funds
Disadvantages of Index Funds

Index funds are passively managed.
They follow the market index, limiting potential returns.
Lack flexibility to respond to market changes.
Disadvantages of Direct Funds

Direct funds do not offer advisory services.
You miss out on professional guidance and support.
Investing through MFD with CFP credentials provides better advice.
Estimated SIP Amount
To achieve Rs. 4 crore in 8 years, you need a high SIP amount. Considering market returns and inflation, aim for a monthly SIP of around Rs. 1 lakh.

Benefits of Actively Managed Funds
Professional fund managers actively manage these funds.
They aim to outperform the market index.
Higher potential for better returns compared to index funds.
Regular Review and Rebalance
Review your portfolio every six months.
Rebalance it based on performance and market conditions.
This ensures alignment with your financial goals.
Final Insights
Building a Rs. 4 crore corpus in 8 years is ambitious. It requires disciplined SIP investments in a diversified mutual fund portfolio. Focus on actively managed funds through MFD with CFP credentials for better returns and guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in