Publication details: ET Now – 18-02-2016
Responses, opinion and view from Kartik Jhaveri.
Question sent by Karandeep Singh:-
I have an annual income of Rs. 27 lakhs. I want to create a corpus of Rs. 1 crore in the next 5 years with the help of stocks and mutual funds
Currently, I have made following investments which is equal to 4.5 lacs.
Stocks – Tata Motors, ICICI Bank, PNB, SBI, Pidilite, Maruti, Bhel, Page Industries, ITC, RPower, Axis Bank, Sun Pharma
Mutual funds – Franklin Templeton High Growth Companies, ICICI Value Discovery Fund, ICICI Top 100 Fund
I would like to know how I can create the required corpus with regular monthly investments.
Kindly suggest to me long term stocks and mutual funds that would help me achieve this goal.
Advice given:
- To meet your goal, equity mutual fund route is the best.
- Equity mutual fund is a long term wealth creation tool. It is advised to have a long term investment horizon of about 4-8 years if you are making lumpsum investments, and 8-15 years if you are doing SIPs.
- To accumulate a corpus of Rs. 1 crore, in the next 5 years, you would have to make a monthly investment of approximately Rs. 1.2 lakh. This is assuming a growth rate of 14% p.a.
- Also note that you may have to wait for another year or so after 5 years to fulfill this goal but 14% p.a. will be a 98% possibility.
