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Building a Rs 75-lakh Portfolio

I am 37 years of age. In the next 21 years, I want to build a Rs 75-lakh portfolio. Please advise how much should I invest per month through SIPs? Suggest some good funds.
-Amita Walia

I am 37 years of age. In the next 21 years, I want to build a Rs 75-lakh portfolio. Please advise how much should I invest per month through SIPs? Suggest some good funds.
-Amita Walia

Considering that you have a long investment horizon of 21 years, you can go for equity funds.

Although nobody can predict what kind of returns will equity markets deliver over the next two decades, but rather than building any flamboyant expectations, lets work around an estimate that on an average the returns might be anywhere between 12 per cent and 15 per cent per annum. If the returns happen to be towards the higher end of this spectrum, then you will need to save around Rs 5,000 per month to build up a corpus of Rs 75 lakh. On the other hand, if the returns happen to be just around 12 per cent, then you will have to save about Rs 7,000 per month to attain your goal. Obviously, the more you save the better, but broadly we can conclude that with some conservative estimates of returns, you should at least be saving and investing Rs 5,000-7,000 per month. As regards the choice of funds, go for a few good diversified equity funds, for which you can refer to our list of five- and four-star rated funds. Stay away from the lure of making quick money and do not run after the new fund offers for their perceived charm Rs 10 per unit price tag.


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