Achieving Goals

Invest the right amount systematically to build a corpus as per your requirements


I plan to retire in 2016 from the Air Force. I have three children for whom I wish to build a corpus of Rs 25 lakh when I retire. I am currently investing Rs 6,000 across IDFC Premier, ICICI Prudential Dynamic, HDFC Top 200, DSPBR Top 100 Equity and BSL Frontline Equity. How much I need to invest to achieve my goal?
-Pawan Kumar

Scheme  Category  Rating  3-year return (%)  5-year return (%)
BSL Frontline Equity Large & Mid Cap * * * * * 10.12 16.74
DSPBR Top 100 Large Cap * * * * * 9.41 15.11
HDFC Top 200 Large & Mid Cap * * * * * 14.56 16.91
ICICI Prudential Dynamic Large & Mid Cap * * * * 11.55 13.74
IDFC Premier Equity Mid & Small Cap * * * * * 14.47 20.26
Data as on April 29, 2011
To build a corpus of Rs 25 lakh in five years, you will need Rs 30,400 earning 12 per cent annualised returns to achieve it or Rs 27,900 earning 15 per cent annualised returns. This goal is achievable by systematically investing in mutual funds, which you are doing. However, you will need to increase your investment from Rs 6,000 that you are investing currently. Your fund selection is good and well diversified; you can continue investing in it and increase allocation to each of the funds that you are currently investing in. Make sure you track the performance of your funds at least once a year to ascertain its progress towards achieving your financial goal.

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