Can I build a corpus of Rs 5 crore in 15 years?
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Tarun Birani, Founder and CEO, TBNG Capital Advisors, responds:
You have a long investment horizon. I would recommend you to have a certain portion of your investments in equity. As you seem to be highly conservative, I would ask you to go with balanced funds. You need to invest Rs 1,20,000 per month to create a corpus of Rs 5 crore at the end of 15 years, assuming an annual return of 10% per annum. Equity is a risky asset class. But debt mutual funds are also not 100% risk free. They have interest rate risk, default risk and others. So, we can only reduce the risk factor but cannot eliminate it completely from any scheme.