I am 35 years old and earn Rs 35,000 a month. I need Rs 40 lakhs in ten years. How much should I invest in a mutual fund through SIPs to achieve this target?
- Vikas Kumar Gupta
If your mutual fund investments grow at an annualise 12 per cent; you will need to invest Rs 17,220 every month to achieve your target. However, if the portfolio earns an annualised 15 per cent, you need to invest Rs 14,360 every month. You can achieve this by investing in a portfolio of large-cap funds such as DSPBR Top 100 Equity or Franklin India Bluechip along with large- and mid-cap funds such as HDFC Top 200 or Fidelity India Growth fund. Make sure you invest regularly and track the performance of these funds and their progress towards your goal of accumulating Rs 40 lakh in ten years.