I am 30 years old. I have been investing ₹7,000 every month in Equity Linked Savings Schemes (ELSSs) since January 2015. I invest ₹3,000 in Franklin India Taxshield, ₹2,000 in ICICI Long term Equity and ₹2,000 in Reliance Tax saver. Will I be able to make ₹5 crore with these funds when I reach 60 years?
- Madhu Verma
If you invest ₹7,000 per month for the next 30 years and if your investment makes around 12 per cent per annum, you will have a corpus of around ₹2.74 crore by the time you are 60 years old. You don't have to feel disheartened. We have assumed that you are going to invest a fixed sum of ₹7000 for the next 30 years. But this may not be the case. Your salary will go up and so will your investments. Since you have a very long investment horizon, you are likely to meet your target if you persist with your regular investments. You should increase your investments every year in line with your salary hikes. It will help you to create your target corpus without much trouble.
This article was originally published on February 15, 2016.
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