How can I create Rs 50 lakh in 22 years?
I am 38 years old and my goals are given below:
Goal 1: To create Rs 20 lakh after 15 years for my son who is now four years old.
Goal 2: To create Rs 50 lakh after 22 years for retirement.
My portfolio:
SBI Blue Chip Fund: Rs 3,000
SBI Magnum Multicap Fund: Rs 2,000
HDFC Balanced Fund: Rs 2,000
L&T Emerging Businesses Fund: Rs 3,000
Are these schemes sufficient to reach my goals? I want to increase my investments by another 10 per cent per year.
--Debraj Roy
Joydeep Sen, Founder, wiseinvestor.in responds:
I think the amounts you have mentioned are monthly SIPs. At a growth rate of 10 per cent per year, starting at zero, at a static contribution (i.e. without increasing every year), you require an SIP of Rs 4,786 per month to reach Rs 20 lakh after 15 years. Similarly, to create Rs 50 lakh after 22 years, at a growth rate of 10 per cent per year, you need to invest Rs 5,202 per month via SIPs. Hence your investments are fine.It will be easier for you to reach to your goals if you increase your contribution by 10 per cent per year.
Goal 1: To create Rs 20 lakh after 15 years for my son who is now four years old.
Goal 2: To create Rs 50 lakh after 22 years for retirement.
My portfolio:
SBI Blue Chip Fund: Rs 3,000
SBI Magnum Multicap Fund: Rs 2,000
HDFC Balanced Fund: Rs 2,000
L&T Emerging Businesses Fund: Rs 3,000
Are these schemes sufficient to reach my goals? I want to increase my investments by another 10 per cent per year.
--Debraj Roy
Joydeep Sen, Founder, wiseinvestor.in responds:
I think the amounts you have mentioned are monthly SIPs. At a growth rate of 10 per cent per year, starting at zero, at a static contribution (i.e. without increasing every year), you require an SIP of Rs 4,786 per month to reach Rs 20 lakh after 15 years. Similarly, to create Rs 50 lakh after 22 years, at a growth rate of 10 per cent per year, you need to invest Rs 5,202 per month via SIPs. Hence your investments are fine.It will be easier for you to reach to your goals if you increase your contribution by 10 per cent per year.