The education and bright future of children is the dream of every family. For this, families make different types of investment plans. Some people invest in FD or RD, while many invest in SIP, so that they can collect a good amount for their children’s education when they grow up. Now the question is, if you invest Rs 15,000 every month in two big funds, i.e., Large Cap and Flexi Cap, will you be able to create a fund of Rs 1.5 crore in 12 to 14 years?
Experts say this is a good start, but your current investment will not reach your goal. A SIP of Rs 15,000 will make Rs 1.5 crore in 12–14 years only if the return is more than 22.5% per year. This is a high return and may be hard to get every year.
Understand the Calculation
- SIP (monthly): Rs 15,000
- Time: 14 years
- Return (annual): 22.5%
- Target amount: Rs 1,50,00,000
The compound interest formula shows that in 12 years, you need a 29.5% return per year. This means Rs 15,000 every month will reach Rs 1.5 crore in 144 months. If you wait 14 years, a 22.5% return is enough. These returns are possible in mutual funds, but there is some risk. You can choose small-cap funds, talk to a financial planner, and start a SIP. With time and interest, your money can grow big.
What Changes Should Be Made?
Experts say you should increase your SIP amount. Also, invest 20% in a good mid-cap or small-cap fund. These funds can grow more in the long term.
- Improve the Portfolio
- Choose a multi-cap fund instead of a large-cap fund.
- Invest in a mid-cap or small-cap fund instead of a flexi-cap fund.
- Check your portfolio every year.
Why Is This Step Important?
The stock market changes all the time. Choosing the right fund and increasing your investment can help you reach your goal. Always invest according to your risk, time, and goal. Do not make decisions in a hurry or based on short-term changes.