Can I create a corpus of Rs 3 crore in 20 years?

I have SIPs worth Rs 25,000.. Here are the details: .

Reliance Diversified Power Sector Fund (Direct/growth): Rs 3,000 monthly
Reliance Equity Opportunities Fund (direct/grwoth): Rs 3,000 monthly
Reliance Top 200 Fund (direct/growth): Rs 3,000
Birla Sun Life Frontline Equity Fund: Rs 5,000
Birla Sun Life Small and MIdcap Fund: Rs 3,000
SBI Bluechip Fund: Rs 2,000
I have Rs 4,000 monthly investment in an ULIP from ICICI Prudential Life (a retirement fund)
My goal is to have Rs 3 crore in 15-20 years.
I am ready to invest more but don't want to buy more funds. I would invest in the existing ones.
--Satyam Jain

Vivekh Pathak, a certified financial planner, responds:

It is not clear what you are looking for. You have also not shared your age.


This is what I understand from your query: Will the existing portfolio help you to create the required corpus of Rs 3 Crore in the next 20 years. Currently, you have shared that you are investing Rs 23,000 per month. I am not counting the investment in the ICICI Prudential Retirement Fund.

Remember, currently valuations are already very high and you can expect a downward trend. Do not feel uncomfortable if you see a steady decline in investments in initial months of market correction, which is expected. Take it as a buying opportunity at lower levels, with SIP doing the averaging out in the long run.

Stage wise Advanced Asset Allocation and Rebalancing Strategy: Strategy Return # 12.51%

Stage-I # 6 years (72 Months)

1. Start SIP of 16000 divided in the ratio of 80% Mid Caps and 20% Large Caps for next 6 years (72 Months).

2. Increase the SIP amount per annum by 10% without fail.

Stage-II # 6 years (72 Months)

1. Corpus created in the Stage-I would need to be divided in the ratio of 70% Mid Caps and 30% Large Caps.

2. The Increased SIP at this year would need to be invested in the ratio as mentioned above, i.e., 70% Mid Caps and 30% Large Caps..

3. Increase the SIP amount per annum by 10% without fail.

Stage-III # 4 Years (48 Months)

1. Corpus created in the Stage-II would need to be divided in the ratio of 60% Diversified Equity/Multi Caps and 40% Large Caps.

2. The Increased SIP at this year would need to be invested in the ratio as mentioned above, i.e., 60% Diversified Equity/Multi Caps and 40% Large Caps.

3. Increase the SIP amount per annum by 10% without fail.

Stage-IV # 4 Years (48 Months)

1. Corpus created in the Stage-III would need to be divided in the ratio of 60% Debt and 40% Large Caps.

2. The Increased SIP at this year would need to be invested in the ratio as mentioned above. That is, 60% Debt and 40% Large Caps.

3. Increase the SIP amount per annum by 10% without fail.

By following the above strategy you should be able to create approximately Rs 3 crore.