I am an MNC manager earning Rs 1.1 lakh per month. What should I do to build a large corpus in future?

financialexpress.com:

Welcome to the Reader’s Query segment of FE Money. Last week, Manoj Singhal shared with us that he is working as a manager in a multinational company (MNC) and earning Rs 1.1 lakh per month.

Manoj said he has liabilities like a Home loan EMI of Rs 26,000 and a Personal loan monthly EMI of Rs 23,000. He has also started a monthly SIP of Rs 5000 in a mutual fund but he usually deposits additional funds as and whenever he gets an opportunity. He has also been investing in National Pension System (NPS) for the last 2 years. Manoj asked what else he should do to build a large corpus in future.

Amar Ranu, Head – Investment Products and Insights, Anand Rathi Shares and Stock Brokers, has answered Manoj’s query:

Thank you for asking this. First, you need to clear the debt part considerably, especially the personal loan which carries high-interest rates (generally it goes between 12-17% depending upon your credit score).

Ideally, one should save a minimum of 25-30% of their net income towards investments. Equity Mutual Fund is a good starting point to build the corpus but be invested for a longer period like 10-15 years so that you get the compounding benefit.

You may consider a mix of diversified equity funds and mid/small cap funds. In your investment journey, don’t forget to analyze your risk profile which would help in deciding the equity and debt allocation at portfolio level overall.

Do reach out to your advisor/Mutual Fund distributor to help you in your investment journey.

Also Read: I will retire in 3 years but I wish to start SIP of Rs 50,000. Where should I invest?

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