I have a monthly income of Rs 35,000. Can you suggest funds that I can invest in to build a corpus of Rs 1 crore over 10 years?
— Prashant Chari
Investing with a goal is a good start. You can build a corpus of Rs 1 crore in 10 years by investing Rs 30,000 a month in a fund with 18 per cent return or Rs 35,000 a month in a fund that earns 15 per cent. There are many funds that have consistently given such returns. Your investing philosophy should be to invest in a fund that is consistent, has a track record and is well rated. Typically, one tends to increase SIP contributions with time. It is wise to start and then increase your contributions gradually.
This article was originally published on January 03, 2011.