My age is 33 and I have 2 years kids. I am investing 2500 each in ICICI Prudential Value Discovery Fund Growth and SBI Magnum Multicap Fund Growth from the last one year. After 20 years I need 1 Crores in my hand. Can you please tell me how much monthly amount has to be invested?
Oct 10, 2017 by Somnath, Coimbatore | Mutual Fund
You are investing Rs 5,000 through monthly SIPs in diversified equity funds. By investing Rs 5,000 a month you can accumulate a corpus of only Rs 50 Lakhs after 20 years assuming returns to be at 12%.
But as your target is to reach Rs 1 Crore after 20 years, you must start another monthly SIP of Rs 5,000 immediately. You can start SIPs in diversified equity funds as they are best suited for young investors like you for meeting long term investment needs.
Now coming back to your fund selection, your selection of ICICI Prudential Value Discovery fund is not good as this fund lagged in performance compared to its peer group in the last one year. However, your selection of SBI Magnum Multi-Cap Fund is good.
For your new SIP, you can select anyone of these top performing diversified equity funds - Birla Sun Life Advantage Fund, DSP BlackRock Opportunities Fund and Mirae Asset India Opportunities Fund.
Here you can see the list of top performing diversified equity mutual funds
Hope the above helps in your investment planning. Thanks for writing to swarajwealth Investment Advisors.