I earn ₹1.5 lakh/month. What should be my SIP to earn ₹2.8 Crore in 20 years?

Vikrant

The primary goals I can understand from your question are children’s future expenses and retirement. to your goal 2.8 crores after 20 years, you need to do monthly SIP 39,000 or 31,000 if we assume annual returns of 10% and 12% respectively. These SIPs will only help you reach your 20 year goal, however, you have also mentioned the need of funds for the future of your children after 10, 14, 18 and 25 years. While I don’t know how much you have in mind for these milestones, here’s an idea of ​​how you can plan for all of your goals.

from your current salary 1.5 lakh if ​​you can try to invest 20,000 per month after taking care of your EMIs and regular monthly expenses till November 2023. You will be able to accumulate a corpus of approx till you meet your EMI commitment. 5.26 lakh assuming a return of 10% per annum

The idea should be to keep this accumulated amount invested and increase your SIP amount from December 2023. 57,000 as your EMI commitment will no longer exist. If possible you can target monthly SIP of 77,000 ( 20,000+ 57,000) after 2 years when you were already investing 20,000 by this stage.

The table below will help you visualize how much corpus you can have at the various milestones mentioned in your query for both the scenarios assuming 10% p.a. growth rate.

The amount above will decrease with each step, depending on how many milestones you reach. So, I suggest you specify a target amount for each milestone as you mentioned 2.80 crores after 20 years and then in the above table see how the above strategy will work for you.

From an investment perspective, you can consider investing in Equity Mutual Funds as the investment horizon is longer.

Harshad Chetanwala, Founder MyWealthGrowth.com

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