I am 58 years old. In addition to my debt investments, I want to build a corpus 10 crore in the next 10 years.
I have 5 lakhs invested in Parag Parikh Flexi Cap Fund, 5 lakh more in Axis Bluechip Fund 2 lakh in UTI Nifty Index Fund. i can save 1 lakh per month and shift also Invested 20 lakhs in equities in debt funds.
– Name withheld on request
to create a fund of 10 crores in 10 years, you have to invest 4.05 lakhs every month for the coming 10 years, if the return from your equity portfolio is assumed to be 12% p.a.
If we assume 10% annual return, then you have to invest 4.58 lakh per month. Monthly investment also includes growth of existing corpus 32 lakhs at the same rate.
Alternatively, you can start investing 1.8 lakhs every month and increase the Systematic Investment Plan (SIP) amount by 20% to achieve your goal assuming 12% annual return.
While the information on Monthly Investable Surplus is not available, if I assume that your Monthly Investable Surplus is 50,000, you will be able to create a corpus of 2.1 crores.
for monthly investment of 1 lakh, your fund may reach 3.2 crores, and for monthly investment 2 lakh can be deposited 5.43 crores at the end of 10 years. This can help you get an idea of how much you will be able to accumulate based on your monthly surplus.
On portfolio building, it is better to diversify investments in six to eight funds.
Along with existing funds, you can consider funds like Canara Robeco Emerging Equity Fund, Sundaram Large & Mid Cap Fund, SBI or IIFL Focused Equity Fund and Kotak Emerging Equity Fund. You can limit the allocation to 10% in Kotak Emerging Equity Fund as it is a mid-cap fund and carries additional risk.
Harshad Chetanwala is the co-founder of MyWealthGrowth.com.