ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » Personal Finance News

Here’s how much you need to invest to create a corpus of Rs 50 lakh

What you need to know about where and how much to invest to earn a handsome amount of return.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Here’s how much you need to invest to create a corpus of Rs 50 lakh
Representational image of a Rs 2000 note. Image Source: IANS

Disclaimer: This story is for informational purposes only and should not be taken as investment advice.

In the good old days the only advice you’d ever hear past around regarding investments would be ‘at least 10% of monthly income needs to go in the bank’. Today, with so many more choices money can grow with attractive interest rates in a whole host of investment options.

To create a huge corpus in savings for an individual will include two basic things – time and initial investment. Investors agree that finding the right portfolio is essential.

One such query of creating a corpus of Rs 50 lakh was asked to ET mutual funds on Monday. “I am investing Rs 1,500 in three mutual fund schemes: SBI Multicap Fund, SBI Balanced Fund, and SBI Bluechip Fund. My plan is to accumulate around Rs 50 lakh in 20 years. I want to know whether I am investing in correct funds? If not, please suggest some other schemes.”

In an earlier report by Zeebiz, we calculated that an investment of merely Rs 5,000 in SIPs for a period of 20 years would give a future value of over Rs 57 lakh. This considering an expected rate of return at 13%.

(Screen grab from an SIP calculator for illustration purposes.)

The investor in question had a total investment totalling to nearly Rs 4,500 per month. However, advice solicited on ‘risk’ or the ‘right’ schemes would depend on the risk-taking capacity of the individual.

In simple terms, the higher amount a person is able to invest in equity or other investment portfolios the higher the returns that would be garnered.

“A multicap scheme is recommended to investors with a moderate risk appetite, whereas balanced funds are typically recommended to new equity mutual fund investors. Largecap schemes like Bluechip Funds are ideal for conservative equity investors. Also, you are exposing your entire investment to extra risk by investing in a single fund house. Your returns would depend on the fortunes of a single fund house,” the analyst replying to the query suggested.

“Assuming an annual return of 12 per cent, you would be able to create a corpus of Rs 45 lakh at the end of 20 years. Try to increase your investments in line with your income every year to make a bigger corpus. Investing a small sum regularly over a long period is the only way to create a large corpus in the long term,” the report concluded.

Do note that to achieve the individual’s financial goal he/she would have to wait 20 years.

In an investor call made to Zeebiz mutual fund desk, an investor wanted to create a corpus of Rs 1 crore in a span of seven years. This is double the amount of returns which was earlier in question and in a shorter span of time.

“For a goal of Rs 1 crore in seven years, he will have to invest close to Rs 80,000 per month, if we assume 12% as the rate of return, Shweta Jain, International Money Matters said.

The investor was further advised to buy a few more large-cap funds in addition to the SIP in six funds already present with the investor.

Watch the video to know which SIPs give you better returns:

Also Read:
  • How to earn Rs 50,000 monthly via investing in mutual funds?
  • How much to invest to make ELSS earn you Rs 1 crore in 11 years?

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
mutual fundsSIPInvestmentsPersonal FinancesavingsMonthly Returns
Written By: ZeeBiz WebTeam
Updated: Tue, Dec 19, 2017
04:23 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Motilal Oswal AMC buys 2.5% stake in this small-cap multibagger stock - check details Motilal Oswal AMC buys 2.5% stake in this small-cap multibagger stock - check details
DSP Investment Managers launches fund for investment in G-Sec; NFO closes on 19 January DSP Investment Managers launches fund for investment in G-Sec; NFO closes on 19 January
Lumpsum Investment: What it is and how it works - Key things to know Lumpsum Investment: What it is and how it works - Key things to know
Year-Ender 2022: Mutual Funds register muted show this year; analysts expect better days in 2023 Year-Ender 2022: Mutual Funds register muted show this year; analysts expect better days in 2023
IDFC AMC gets Sebi nod for change in ownership IDFC AMC gets Sebi nod for change in ownership

LATEST NEWS

BMC Budget 2023: Mumbai civic body increases its budget for 2023-24 by 15% to Rs 52,619 crore – know key highlights

Q3 Results 2023: Paytm narrows loss, IndiGo's net profit soars to Rs 1,422.6 crore

Budget 2023: Bengal gets record allocation of Rs 11,970 crore in Railway budget

UGC NET 2023: UGC-National Eligibility Test Admit card to be released soon — Check exam date, how to download admit card, other details here

ITC Dividend 2023: Check record date, ex-date and payment date | ITC Share Price NSE Target

Twitter creators with ‘Blue Verified’ tag may get ad revenue share, here’s what Elon Musk said

FM Sitharaman says India's image not impacted by Adani's FPO withdrawal amid Hindenburg row

SBI's total exposure to Adani Group at Rs 27,000 crore; none against shares: Chairman Dinesh Khara

Vani Jayaram, veteran playback singer, dies at 77

Pakistan's rupee continues speedy crash against US dollar, suffers another big fall

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV