Crorepati goals: I and my wife are investing in mutual funds, provident fund, NPS. We aspire to accumulate a corpus of Rs 8.5 cr in the next 8 years. How should we do it? 

Crorepati goals: I recently turned 34 years old and updated my financial numbers as of December 31, 2024. My wife, who is 32 years old, and I have reached a portfolio value of over 55 Lakhs. Here is the breakdown: Mutual Funds: Rs 19 Lakhs Stocks: Rs 19.75 Lakhs Provident Fund: Rs 12.25 Lakhs National Pension System (NPS): Rs 3.25 Lakhs Fixed Deposit (FD): Rs 1.8 Lakhs We began building our portfolio after utilising all our savings to buy a 3-BHK house in Bangalore for Rs 1.3 crore in July 2022.

The current outstanding loan on the house is Rs 99 lakhs, with a current market value of approximately Rs 2.5 crore. Our goal is to achieve a corpus of US $1 million (approximately Rs 8.5 crs) in the next 8 years. To work towards this goal, we invest around Rs 2 lakhs per month into SIPs in flexi cap and small cap funds, with an investment horizon of 20+ years. Do you believe this goal is achievable?

Advice by Ms. Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance

Setting investment goals is essential for giving direction and meaning to the funds we invest in products like stocks, bonds, and funds. Effective personal finance practices, such as creating an emergency fund and controlling expenses, are closely linked with both investing and goal setting.

Based on the provided data and assuming the specified return rates, here’s how your investments are expected to grow over time:

> Mutual Funds & Stocks (12% return): Rs 19L & Rs 19.75L are projected to grow to approximately Rs 47 lakh & Rs 48.9 lakh over 8 years.

> Provident Fund (7% return): Rs 12.25 lakh is estimated to grow to Rs 22 lakh.

> National Pension System (12% return): Rs 3.25L is expected to reach Rs 8 lakh.

> Fixed Deposit (6% return): Rs 1.8 lakh is projected to grow to Rs 2.87 lakh.

> SIP Contributions (Rs 2 lakh/month at 12% return for 8 years): Your systematic investments could accumulate Rs 3.23 crore in this period.

> Total Projected Corpus in 8 years: Rs 4.52 crore.

> If investments remain untouched for another 12 years (total 20 years): The corpus could grow to approximately Rs 17.19 crore.

Key Considerations for a Holistic Financial Plan

While these calculations provide an estimate based on the given inputs, a comprehensive financial plan requires a deeper analysis of multiple factors, including:

• Your income, lifestyle, and expenses
• Emergency planning and risk management
• Liability-to-income ratio and income-to-investment ratio
• Your overall asset allocation strategy
• For a well-structured and personalized approach, it is advisable to consult a SEBI-registered financial advisor who can help you align your investments with your long-term financial goals effectively.