I want to get 2crore in next 10 years where i invest.
My age is 27 and salary is 50000 pm out of which 3500 is already in Running sip
Ans: To achieve Rs. 2 crore in the next 10 years, you need a clear strategy. Your current SIP of Rs. 3,500 is a good start, but more is needed.
Understanding Your Financial Situation
1. Monthly Salary: Rs. 50,000
After essential expenses, assess how much you can save.
2. Current SIP: Rs. 3,500
Continue with your existing SIPs.
Evaluate the performance periodically.
Investment Strategy
1. Increase SIP Contributions
Aim to save and invest a larger portion of your salary.
Start with an additional Rs. 10,000 per month.
2. Diversified Portfolio
Invest in a mix of large-cap, mid-cap, and small-cap funds.
Include aggressive hybrid funds for balanced growth and stability.
3. Actively Managed Funds
Choose funds managed by experienced professionals.
Actively managed funds can outperform index funds.
Steps to Achieve Your Goal
1. Calculate the Required SIP
Use an online SIP calculator.
Determine the monthly SIP needed to reach Rs. 2 crore.
2. Choose Suitable Funds
Large-cap funds for stable growth.
Mid-cap and small-cap funds for higher returns.
Avoid index funds due to their lower potential for outperformance.
3. Regular Monitoring
Review your investments every six months.
Adjust your portfolio based on market conditions and performance.
Additional Strategies
1. Emergency Fund
Keep 6 months of expenses in a liquid fund.
This ensures you don't dip into your investments in case of emergencies.
2. Increase SIP Amount Annually
Increase your SIP amount by 10% each year.
This compensates for inflation and helps reach your goal faster.
3. Tax Planning
Invest in tax-saving mutual funds.
This helps reduce your tax liability and increase savings.
Disadvantages of Index Funds
1. Lower Potential Returns
Index funds track the market and rarely outperform.
Actively managed funds aim to beat the market.
2. Limited Flexibility
Index funds follow a fixed strategy.
Actively managed funds can adapt to market changes.
Benefits of Regular Funds through MFD with CFP Credential
1. Professional Guidance
Get advice from a certified financial planner.
They can tailor investments to your goals.
2. Better Service
MFDs provide regular updates and reviews.
This ensures your investments stay on track.
Final Insights
To achieve Rs. 2 crore in 10 years, increase your SIPs and diversify your portfolio. Invest in actively managed funds for better returns. Regularly review and adjust your investments. Consulting a Certified Financial Planner can help you stay on track and reach your financial goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
