New Delhi : I am investing Aditya Birla Sun Life Tax Relief 96 and . 6,800 per month in 6,500 per month with 10% step-up in Kotak Flexicap and 5,500 per month with step-up in Nippon Large Cap. I am doing this SIP since 2018. i am also investing 10,000 per month in PPF and also taken Postal Life Insurance which will mature in 2033 (Maturity amount is approx) 32 lakhs). My job guarantees me a post retirement pension so I am not planning for any retirement corpus. I will need money for my children’s higher education ( 1 crore) and marriage ( 50 lakhs) which will be 15 and 20 years from now. Will I be able to meet the target with my current investment?
—praveen
Answer: Harshad Chetanwala, Founder, MyWealthGrowth.com
Considering the details shared by you in the query will be able to get the corpus of you 1 crore more for the higher education of your children 50 lakhs for their marriage after 15 and 20 years respectively. One of the strategies you can follow is to achieve your goals.
Since you have mentioned investment in SIP with 10% growth every year since 2018, I have considered estimated accumulated corpus 9.5 lakhs till now for your SIP. There is a possibility that your current amount may exceed the prescribed amount. If we assume that you will continue with mutual fund SIP and PPF investments in the same way for the coming years, then after 15 years your PPF balance of 7% p.a. return can be approx. 31 lakhs. Similarly, at that stage your mutual fund corpus will be approx. 86 lakh assuming 10% return per annum. You can access PPF balance 31 lakh and 69 lakhs from mutual funds to look after the goal of higher education of your children.
Balance Mutual Fund Corpus One can continue investing with step-up SIP of 17 lakhs for five more years. With these investments, you can access a corpus of approx. 1.23 crores which can help you take care of the wedding expenses comfortably. You can reinvest the maturity proceeds of your insurance policy in equity with a wealth creation perspective and also use it for marriage of children if for some reason you have to stop your monthly SIP later.
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