How to create a corpus of Rs 1 crore?

I am 34 years old. I want to invest a lumpsum of Rs 10 lakh in mutual funds for 15 years. Is it advisable? I want to accumulate Rs 1 crore to achieve my personal goals. How to move?

-- Nilesh Kale

Deepali Sen, Founder, Srujan Financial Advisors, responds:



If you invest Rs 10 lakh, to begin with, in diversified equity funds for 15 years; at a compounded return of 12 per cent per annum you will have Rs 55 lakh. In addition, if you invest around Rs 8,000 per month, you could have a corpus of Rs 1 crore (at 12 per cent compounded returns). It makes sense to invest in the liquid mutual funds and initiate a STP (Systematic Transfer Plan) over 12 months to the relevant equity Fund.

You could invest equal amounts in funds like SBI Magnum Multicap Fund (invest Rs 3,lakh in SBI Ultra Short Debt Fund and set up a STP of Rs 25,000 for 12 months towards SBI Magnum Multicap Fund), Aditya Birla Sun Life Advantage Fund (invest Rs 4 lakh in Aditya Birla Sun Life Savings Fund and set up a STP of Rs 33,000 for 12 months towards Aditya Birla Sun Life Advantage Fund) and ICICI Prudential Focused Bluechip Fund (invest Rs 3 lakh in ICICI Prudential Flexible Income Plan and set up a STP of Rs 25,000 for 12 months towards ICICI Prudential Focused Bluechip Fund).

Similarly, you could set up SIPs of Rs 3,000, Rs 2,000 and Rs 3,000 in the abovementioned diversified equity funds respectively