I want to create a corpus of Rs 50 lakh for the higher education of my daughter. I will need the money after 12 years. I also want to create a corpus of Rs 2 crore for my retirement, which is 15 years away. Where and how much should I invest monthly to reach both the goals?
To know the exact amount you need to save monthly, go to Value Research Online and use the Goal Calculator tool. It will help you get the amount you need to invest monthly based on an assumption that equity funds will yield 10-12 per cent annualised returns on investment.
Once you know the amount that you need to invest, be disciplined with your investments. Start investing in two-three good multi-cap funds. Also, don't wait for the last day to withdraw your money. You should rather start withdrawing your money about one year before you actually need it. For instance, you may need the money for your daughter's higher education after 12 years. So, after 11 years, start withdrawing the money for your daughter's first-year education cost. Similarly, when she is in the first year, withdraw the second year's tuition fees or expenses. The way you invest through an SIP, in the similar manner, you should do your withdrawal so that you don't have to fear about the state of the market when you need the money.