Question from one of my friend
I am 38 years old. I want to build a corpus of Rs 50 lakh in 12 years' time, by the time I reach 50. With this in mind, I have just started SIP into HDFC Top 200 Fund and ICICI Pru Dynamic Fund for Rs
5,000 p.m., in each fund. Please let me know if these investments are sufficient to build the required corpus.I am 38 years old. I want to build a corpus of Rs 50 lakh in 12 years' time, by the time I reach 50. With this in mind, I have just started SIP into HDFC Top 200 Fund and ICICI Pru Dynamic Fund for Rs
We assume that the value of Rs 50 lakh mentioned by you is the future value. If that is the case, then you would be required to invest an amount of Rs 16,229 p.m. for next 12 years, if the funds generate an average return of 12 per cent p.a. But, if the funds generate a higher average return of 15 per cent p.a., then you would need to invest only Rs 13,309 p.m. Hence, you would be required to invest more than the current investment made, to build the required corpus. The current investment of Rs 10,000 p.m. for next 12 years can fetch you around Rs 30.81 lakh (at 12 per cent p.a.) or Rs 37.57 lakh (at 15 per cent p.a.).
