Congratulations! Your vision of amassing 4 crores in 25 years is both ambitious and attainable, much like a young sapling growing into a towering tree. The question is, how do we nurture this growth? Let’s break this down.
- Historical Returns: Indian mutual funds, especially equity-based ones, have seen average returns of around 12% annually. Yet, remember, past performance is no guarantee of future results.
- Power of Compounding: The beauty of investing lies in compounding. As Warren Buffett rightly said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” By starting early, even small contributions can grow magnanimously.
- Let’s Do The Numbers: Using an assumed return of 12%, to achieve a corpus of 4 crores in 25 years, you would need to invest approximately Rs. 27,000 monthly. This figure can vary based on the actual returns and market conditions. If returns drop to 10%, this amount goes up to Rs. 34,000. But if the markets do well and you achieve a 15% return, you’d be putting in only about Rs. 18,000 monthly.
- The LSG Approach: When deciding where to park this monthly investment, consider the Jama Wealth’s LSG (Liquidity-Safety-Growth) framework. Allocate judiciously according to your risk profile. Mutual funds offer various schemes, from equity to debt, each having its risk and reward profile.
- Staying Consistent: The discipline of staying invested is pivotal. As the legendary investor Peter Lynch said, “The real key to making money in stocks is not to get scared out of them.” Market fluctuations are like the monsoon seasons, sometimes predictable, sometimes not, but essential for growth.
- SEBI Registered Investment Advisor: Engaging with a SEBI Registered Investment Advisor can offer tailor-made strategies for your financial goals. These experts can guide you on the right mutual funds to pick, keeping in mind the Roots and Wings philosophy, ensuring you invest in funds that have solid foundations (Roots) and potential for growth (Wings).
To sum up, while Rs. 27,000 monthly seems like a good starting point, it’s essential to review and possibly adjust this amount based on market performance and any changes in your financial goals. And, always remember the practical side of this information: Start early, remain consistent, and periodically review your portfolio.
Should you require a trusted hand to guide you through this journey, consider Jama Wealth’s PMS services and associated investment advisory services.
