Many would have realized the need for savings during the corona crisis. Because to that extent the corona is taking the people by storm. Millions of people have lost their jobs and are suffering from loss of livelihood.
In that sense, the 25-year-old Sundar wants to invest in two important goals in his life.
This is the first goal. Are small cap funds sufficient to achieve these two goals? The first target is to buy a house worth Rs 2 crore in 6 years. 6 years is 8 - 10 years but that's fine. But what can be invested in to achieve this goal. His question is how much to invest
What is the second goal? As well as thinking of saving Rs 3 crore for Sundar’s retirement. He also plans to achieve the goal at the age of 50. He is currently 25. So how much should he invest in this? His question is what to invest in.
This is a very good thing Sundar's questions are really seen as welcome. Because planning in advance is a very good thing. That too is a very good thing to plan at a young age. Because there is a lot of time. There are many ways to achieve the corpus you need.
Home Purchase If buying a home in six years is your priority, you can do it with a home loan. You can invest in equity funds if you earn 10% post-tax income to achieve the target of Rs 2 crore. Large cap and mid cap stocks in particular require an investment of Rs 25,000 per month.
Increase investment If this house is willing to extend for another two years to achieve the goal, the monthly investment can be reduced to Rs 21,000. If you continue to increase your investment by 5% over the same year, this will help you achieve your corpus a little earlier.
Corpus can be easily reached which means if you are investing Rs 21,000 in the first year, it would be better to increase it to Rs 22,050 in the second year. At 25 you can invest more in subsequent years than you earn. Corpus can be easily reached when so increased
You need to create a corpus of 3.75 lakh rupees to meet the cost of 1 lakh rupees based on investment inflation for retirement. For this you have to invest Rs 23,500 per month till the age of 50 every month. To achieve this goal you need to invest in 100% equity mutual funds
Increase Investment in Retirement Plan Investing in Retirement Plan can also increase your investment from year to year. Once the same home loan has been repaid, the loan rate can be added to the investment
What can you invest in? Not only the investment but also the funds you choose are very important to achieve the goals you intend to invest. Specifically you can invest 80% of your investments in large cap funds and the rest in small cap funds. Although small cap funds can offer some returns, they are volatile.Avoid them as much as possible. This article is based on (BT). You can invest by consulting a suitable trusted advisor before investing.
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