I am 47 years old. I have been investing Rs 3,000 per month in SBI Bluechip Fund for the last six months. I also have investments in a PPF account: I have been investing Rs 3,000 in it for the last eight years. I need Rs 20 lakh after six years for my daughter’s marriage. Is it possible?
-Rajiv Bali
Assuming an annual return of 12%, you will be able to create a corpus of around Rs 3.17 lakh by investing Rs 3,000 per month in an equity mutual fund scheme for six years. Similarly, assuming an annual return of 8%, your investments in PPF will give you Rs 9.30 lakh at the end of 15 years. That means you will be able to create a corpus of around Rs 12.47 lakh.
You started investing in equity mutual funds at the last minute to achieve your goal. If you have started investing a small sum of Rs 500 per month when your daughter was born, you would have been able to create a corpus of Rs 5 lakh by the time she is 20 years old. With 2,000 per month, you would have been able to create Rs 20 lakh at the end of 20 years. Equity investments offer your very high returns if you invest a small sum regularly for a long period. However, it is difficult to make up for the lost years even with a very high investment.
