Target Rs. 1 crore

I have a newborn son. I have a target to give him Rs 1 crore when he is 20 yrs old. Please advice how much should I invest monthly & where. If we assume that well rated equity funds would generate 20 per cent per annum, you need to invest Rs 4500 per month to achieve your target. Choose some well rated funds like HDFC Top 200, Kotak 30, Birla Sunlife Front Line Equity or Sundaram Select Focus to achieve this. I invested Rs 50000/- pa for 3 yrs in AVIVA ULIP. My agent told me that I will get Rs 500000/- after 5 yrs. Is it true? Please help ULIPs have high associated initial costs which eat up your return in the long run. Your policy would need to generate 47 per cent per annum to achieve this (net of charges). This is not a realistic expectation. I want to invest my money in any energy fund. Please suggest some good funds. There are no particular energy funds, but you can consider few funds which have heavy exposure to this sector. Some funds are - Reliance Diversified Power, DSP ML Tiger

This article was originally published on May 07, 2008.