How much corpus can I get after 30 years if I have invested 50 lakhs in a lump sum in an l&t emerging business fund?

This fund has done well over the last few years. Assuming 18% p.a. (difficult to sustain over 30 years), but we will see the numbers to get an idea:

• Overall corpus of 43.2 crores if you invest in direct plan
• But if you lose 1% each year to commissions, then you ned up making 33.3 crores.
• That could be a difference of 10 crores!

Secondly putting all eggs in one basket doesn’t make sense. Diversify across 2–3 other funds and allocate assets such that you can rebalance to protect your corpus as it grows!

Once you cross 3–4 times your annual income in corpus size, asset allocation is very important.

Invest in direct plans with a SEBI Registered advisor’s help who can give trusted advice. Beware of free offerings in the market that may end up costing more in the long run!