How to build a ₹3 crore corpus to start a business?
—Name withheld on request The corpus amount of ₹3 crore will ask for a much higher investment. If we assign your present portfolio of ₹14 lakh for this goal at 10% per annum (p.a.) growth, it has the potential to reach approximately ₹36 lakh at the end of 10 years. If we assume a 12%p.a.
returns it can be ₹43.5 lakh. At present, your potential to invest is ₹60,000 per month and if you keep investing the same amount every month for the coming 10 years, you will be able to build a corpus of ₹1.2 crore at 10% p.a. and ₹1.33 crore at 12% p.a.
You need a monthly investment of ₹1.15 lakh to reach your goal of ₹3 crore. While it is not easy to reduce your expenses from ₹1 lakh to ₹45,000 per month, you can consider another strategy. You can increase the monthly investments every year by 20% to reach the desired goal amount.
In such a case, you need not compromise on your savings or expenses and get the opportunity to increase the investment as you grow in your career in the coming years. Here are some funds that you can consider investing in. UTI Nifty Index Fund (15%); ICICI Prudential Bluechip Fund (15%); Parag Parikh Flexicap Fund (15%); HDFC Flexicap Fund (15%); 360 One Focused Equity Fund (15%); Kotak Emerging Equity Fund (15%); and Nippon India Small Cap Fund (10%) Harshad Chetanwala is co-founder at MyWealthGrowth.comMilestone Alert!
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