I earn Rs 20,000 per month in hand. My daughter is six years old. She will be attending primary school. I don’t own a house. I want to make savings as well as invest my earnings in a proper way so that the amount should be used for my daughter’s education, marriage, and my retirement. I also want to have my own house. I want you to help me with investing for my retirement plan, my daughter’s future, and also insurance or mediclaim for both of us. My child has not started school yet. So, presently I am not including my child’s school fees in my expenditure.
My monthly expenditure is under Rs 8,000. I want to start investing Rs 5,000 per month but gradually, I would like to increase my investment to Rs 10,000 per month. I do not have any other source of income. Kindly guide how much I can accumulate with my investments?
By Vaibhav Agrawal, CIO, Teji Mandi
Assuming that you invest Rs 5,000 per month for the next 15 years, with a good mix of debt and equity funds, and a return expectation of 12%, your total corpus size would be Rs 25 lakh. If you increase SIP from Rs 5,000 to Rs 8,000, your corpus amount would become Rs 40 lakh in the same time period. Therefore, would suggest that you start investing now and gradually increase your monthly SIP to Rs 8000 or more if possible after paying your daughter’s school fee. The effects of a long period of time in compounding wealth are very important.
Also, you can take the Bajaj Allianz Mediclaim policy to take care of your health insurance needs. To start with, you can invest in HDFC Retirement Savings Fund – Hybrid Equity Plan.
Revisit your investments at least once a year.
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