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Creating Rs 1 crore in 15 years

It is always better to invest in equity mutual fund schemes to achieve long-term financial goals

I have a disposable monthly income of ₹10,000. I am 45 years old. I want to build a corpus of ₹1 crore by the time I am 60 years old. I can take risks in the short term, say, another seven years.
- Atanu

It may not be possible to create a corpus of ₹1 crore by investing ₹10,000 every month for next 15 years. If your investment grows at 12 per cent per year, you would be able to accumulate around ₹50 lakh at the end of 15 years. However, you don't have to feel disheartened. Start with whatever you can spare at the moment and increase your investment whenever your income goes up. This strategy may help you to achieve your target corpus.

It is always better to invest in equity mutual fund schemes to achieve long-term financial goals. This is because equity has the potential to offer superior returns than other assets over a long period. You must continue with your regular investments irrespective of the market conditions and start shifting the money to a safer avenue a few years before your goal. This will ensure that a sudden volatility in the market does not upset your financial plans.

If you are a first-time investor to the stock market opt for a balanced scheme. These schemes invest in a mix of equity and debt and they are less volatile than pure equity schemes. Here is a list of best balanced schemes.

If you already have investments in the stock market, you can opt for diversified equity mutual funds. Here is a list of best diversified equity mutual fund schemes.

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