Advice on investment

[polarbearwear]

I am 32 y /f. I need advice on investment. I m a mother of two kids. I dont have tocontribute in household expenses as i live in joint setup my husband n in laws take care of that. I earn 20k per month. Wanted advice how much and where to invest so that i can earn a atleast 2 cr by the age of 40. I live a simple and sustainable life style.

 

[faithsong01]

@polarbearwear 20000 investment per month with a time frame of 8 years, it's impossible to get 2Cr in this.

 

[polarbearwear]

@faithsong01 Thank you for time. Appreciated.

 

[polarbearwear]

@faithsong01 Thank you for reply how much do i need to invest to get 2cr in 8 years. I m also upgrading my skills so that i can have a hike in my salary.

 

[faithsong01]

@polarbearwear You might have to invest 1LPM for 8 year time frame with an xirr of 13% to get there thanks.

 

[polarbearwear]

@faithsong01 Someone mentioned in this sub to invest in sip 10k per month consistently for 8-10 years n u ll get 2 cr . How true is that? 1lpm wont be possible for me. Currently i have invested 10k n i ll increase it to 20k n eventually 30k after hike.

 

[faithsong01]

@polarbearwear Getting that amount for 10k per month is not possible at all, even at an xirr of 40%
https://groww.in/calculators/sip-calculator you can play around with this to find out what needs to be done.

 

[mike_l]

@faithsong01 Also , consider stepping up your investment amount each year. So that your initial investment amount will be reasonable

https://groww.in/calculators/step-up-sip-calculator

 

[graceandjoy]

@polarbearwear

Someone mentioned in this sub to invest in sip 10k per month consistently for 8-10 years n u ll get 2 cr . How true is that?

Very untrue.

10000 sip for 10 years with 30% yoy, would only give me a return of 75L. Even the the biggest investors in the world can only do about 20% consistently. You can expect between 10% and 15% to be happy about. If anybody tells you that they can grow at a faster rate than that, be very very suspicious, because the question rises on why they are telling you this, when big corporations would give him truck load of money just for teaching them how to. (The answer is, the big corporations know that he can't generate, but you don't.)

You need money and time to grow your money. If you have a shortage in either one, it's will not grow.

Currently i have invested 10k n i ll increase it to 20k n eventually 30k after hike.

If you do 20k for 15 years and if you get a 12% yoy growth, then you get 1 cr. If you can wait for another 5 years (20 years), you will get your 2 cr.

If you get a hike and consistently invest, that time will reduce.

I highly encourage playing with the calculator to build a plan.

https://groww.in/calculators/sip-calculator

 

[astroblema]

@polarbearwear That is a very steep goal. But don't get disheartened by this.

It is a good start that you are at least thinking about saving.

10k per month for 10 years at 10% before tax will roughly get you 20L.

I don't know why you are putting a hard upper bound of 8 years.

Time is kind to compounding. The more time you give, the faster it compounds.

You can split up 50-50. And let it compound until you retire (age 50-55 or whatever)
1. 50% in PPF (debt, is safe, and tax efficient).
2. 50% in Nifty50 index fund (equity, risky, tax on profit)

 

[polarbearwear]

@astroblema Thank you for telling detail. I will keep the amount on MFS for a long time. I wish i started investing in my 20s

 

[astroblema]

@polarbearwear Until age 50, you still have 18 years. 10k pm. in PPF for the next 18 years will be approx 40L at 7.1%

Until age 55, you still have 23 years. That same PPF investment, if retained for 23 years, will be approx. 65L.

Remember, this is only 50% of your investment.

The other 50%, if compounds at say 10% in Index Fund for 23 years, then it will be approx 97L before tax. There you have your 1 cr.

 

[polarbearwear]

@astroblema Thank you i ll consider this option, sounds good

 

[resjudicata]

@polarbearwear Start with 5000 in SIP and 5000 in FD. 10k per month for ur own expenses. At this salary u don't have to pay income tax so don't go for ELSS funds and PPF and all. Right now focus on upskilling and as salary will increase ur investment amount will also increase.