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How much should I invest via SIP in mutual funds to create Rs 3 crore?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Updated: Nov 20, 2019, 09.21 AM IST
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I want to build a corpus of Rs 3 crore by the time I retire at 60. My risk profile is moderate. I have a stable income, and I am planning to stay invested for more than 15 years.

I have the following SIPs in my portfolio:
Mirae Asset Emerging Bluechip Fund: Rs 1,500 per month
SBI Banking & Financial Services Fund: Rs 1,000 per month

Also, I have some other lumpsum investments which are not of high value. I started my investments this July, and I am 27 years old. Could you recommend me some best SIPs? Also, comment about my current SIPs. What should be my SIP investment to achieve a good corpus by the time I retire.
- Adarsh Menon

Assuming an average return of 12 per cent, you need to invest around Rs 8,500 per month to build a corpus of Rs 3 crore in 30 years. However, a word of caution: such seemingly large, round numbers will not be enough to take care of your future financial goals. That is why it is always better to identify your long-term financial goals, find out the current cost to meet the goal, provide for a reasonable inflation number, and taxes if possible, to arrive at a realistic target. For more, watch the slideshow below: Why Rs 1 crore will not ensure a rich retired life?

Why Rs 1 crore will not ensure a rich retired life?

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A big round figure is no guarantee

2 May, 2019
Rs 1 crore, Rs 2 crore, or Rs 5 crore will not guarantee a cushy retired life to you. Why? The basic idea behind creating a target corpus is to ensure that returns or interest from it would be enough to take care of your expenses after retirement. Have you done the math to find out whether the big round figure would do that?
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You are currently investing in a large & mid cap scheme and thematic scheme. Both the schemes are not in line with your stated risk profile. Large & mid cap schemes are mandated to invest 35% of the corpus in large cap stocks and 35% in mid cap schemes. Mid cap stocks carry higher risk and they can also be very volatile. That is why you should have a slightly higher risk appetite to invest in large & mid cap schemes. We do not recommend thematic schemes to regular investors. We believe regular investors are better off with multi cap schemes. Multi cap schemes can invest across market capitalisations and sectors. That means a good multi cap mutual funds will always have a meaningful exposure to a promising sector or stocks in a certain market captialisations.

Since you have a moderate risk appetite, you should invest in a good multi cap scheme to take care of your long-term financial goals. Try to increase your SIP investments every year or whenever your salary goes up. This will help you to maximise your savings and investments. Here are our recommended multi cap funds: Best Multi Cap Funds to Invest in 2019
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

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