My goal is to create a corpus of Rs 1 crore within 10 years through a monthly SIP of Rs 10,000 per month. Is this possible? Or should I increase my investment to Rs 20,000 per month? Can you suggest what should I do to reach my financial goal?
--Savith Reddy
Since you have an investment horizon of 10 years, you may consider investing in equity mutual funds. Equity
mutual funds are ideal to achieve long-term financial goals, as they have the potential to offer superior returns than other assets over a long period. You must choose a mutual fund scheme or portfolio based on your risk profile.
Assuming an annual return of 12 per cent, you may be able to create a corps of Rs 23 lakh in 10 years with your monthly SIP of Rs 10,000. To create Rs 1 crore in 10 years, you should invest around Rs 43,000 via monthly SIP in an equity mutual fund schemes. Again, we are assuming an annual return of 12 per cent.
You should always identify your long-term financial goals and qualify them to arrive at a realistic target. It will help you to start an investment programme to achieve your goals.
Here is our recommended equity mutual fund SIP portfolios. Best mutual funds to invest in 2018. Choose a portfolio based on your risk profile and SIP amount.