Mutual fund investment: Aditya Shah, Chartered Financial Analyst (CFA), shared his insights and mutual fund recommendations to help investors target a Rs 3 crore corpus in 15-20 years. On ET Now’s show ‘Bano Apna Finance Minister ‘, he answered mutual fund queries raised by a 45-year-old investor. The female investor inquired about how she can accumulate a Rs 3 crore corpus in 15-20 years and what strategy she should follow. Extracting crucial information from her query, we bring you expert insights. At the end of the article, we have embedded the video for your reference. Without taking much of your time, let’s go through the mutual fund recommendations and other significant details.
Mutual fund investment plan
- Investor age: 45 years
- Investment period: 15-20 years
- Target corpus: Rs 3 crore
- Assumed annualised return: 12 per cent
- Lump sum investment: Rs 40,00,000
- Step-up SIP: 10% (yearly)
Expert suggestion
The longer the time horizon, the more an investor’s investment benefits from compounding. A 15-to-20-year time horizon is quite good. And since the investor will also increase the SIP by 10% every year, they may be able to build a sizeable corpus. Adopting a small cap and mid cap oriented strategy would be beneficial, said the expert.
Mutual fund recommendations by expert
Expert Aditya Shah recommended the following funds with the investment percentage:
- Bandhan Small Cap Fund: 20% of the SIP
- Kotak Mid Cap Fund: 20% of the SIP
- Parag Parikh Flexi Cap Fund: 30% of the SIP
- Nifty 50/Nifty 500 index: 30% of the SIP
Lump sum investment calculation: 15-year investment period
- Lump sum investment: Rs 40,00,000
- Investment period: 15 years
- Assumed annualised return: 12%
- Approx total corpus: Rs 2,18,94,263
With a lump sum investment of Rs 40 lakh, a 15-year investment period and an assumed annualised return of 12%, the investment could grow to an approximate corpus of Rs 2.19 crore.
Lump sum investment calculation: 20-year investment period
- Lump sum investment: Rs 40,00,000
- Investment period: 20 years
- Assumed annualised return: 12%
- Approx total corpus: Rs 3,85,85,172
With a lump sum investment of Rs 40 lakh, a 20-year investment period and an assumed annualised return of 12%, the investment could grow to an approximate corpus of Rs 3.85 crore.
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(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests that its readers/audience consult their financial advisors before making any money-related decisions.)
