Will I be able to create a corpus of Rs 1 crore in 20 years?

I want to invest Rs 15,000 through monthly SIP. I want to create a corpus of Rs 90 lakh-Rs 1 crore over a long period of 15-20 years. If Rs 15,000 is not sufficient, please suggest how much money do I have to invest to achieve the target corpus of Rs 1 crore.
--Bhadresh Patel

If you invest Rs 15,000 every month for the next 20 years and if your investments make around 12 per cent annual return, you would be able to create a corpus of around Rs 1.49 crore at the end of 20 years. However, this is not the right way to go about it. Do not work with such imaginary numbers. Such numbers would look big, but they won't be enough to take care of the goals at a future date. To avoid the trap, try to fix all your financial goals in life, put a number to each goal and then invest the right amount to achieve every goal.

You have spoken about investing Rs 15,000 via SIPs, but haven't mentioned the schemes you wish to invest. Here is our recommended equity mutual fund SIP portfolios. Choose a portfolio in line with your risk profile and SIP amount.

A word of caution. If you do not understand basics of investing and mutual funds, it would be a better idea to hire the services of a good mutual fund advisor. The advisor would help you completing the formalities, choosing schemes and monitoring them, and carrying out transactions. Invest directly only if you can manage all these on your own.


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