How do I accumulate Rs. 1 crore?

I want to invest over the next 20 years to accumulate Rs 1 crore for my 3-months old daughter. How much I need to invest every month and where? Shivanand .M, Bijapur, Karnataka It is difficult to guess what will be the return on equity funds over the next 20 years. But to accumulate Rs 1 crore in 20 years, you need to invest Rs 7550 if it earns 15% return. I would suggest chose 2or 4 good equity funds invest every month. My choice will include Magnum Contra, Kotak 30, HDFC Top 200 and Franklin Prima Plus. I m 31 years male want to invest in s.i.p Rs 500 pm for 30 years. Which policy should I choose? Debasish Siliguri Choose a good equity fund, 5 or 4-star fund and invest regularly. I want to gift my newly born grandson Rs 5 lakh for lock in period of 20 years. In which mutual fund I should invest so that there is no tax liability to his parents. Vipan Aggarwal, Delhi There is no long term capital gains tax in India for equity related funds at this moment. Hence invest in five or four star rated, diversified equity funds like Reliance Growth, Magnum Contra, Kotak 30, HDFC Equity, DSPML TIGER. Opt for a systematic investment plan (SIP) and invest the amount over few months. Divide your investment among 4 or 5 funds and rebalance your portfolio every year.

This article was originally published on June 11, 2008.