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Can I reach my financial goals one by one

Hope you are keeping good. My query is little bit over-ambitious, but still I want to attain my financial goal. My query is, How much I should invest in which mutual funds so that I can attain atleast 10 lakhs for my sister's marriage in the next 5 years. Next goal: Close to 1.5 Crores for my daughters marriage after 25 years and 1 Crore for my retirement during the same period. I am naive in the MF scenario, my current investment is 3000 SIP in Axis Long Term ELSS which I stopped after 1 year, and will move to DSP Tax Saver, then 4000 in Birla sun life 96 ELSS, and 4000 in DSP BlackRock Micro Cap SIP, 10000 lump sum I invested in L&T Emerging Business Fund and I plan to invest lump sum of 3 lakhs in equal division of 1.5 lakh each in Mirrae Asset Emerging and L&T Emerging (both small and mid cap). Please let me know if I need to invest more and how much and in which funds to attain my goal one by one?

May 13, 2017 by Subham Dutta, Bangalore  |   Financial Planning

I am doing good and expect the same from you. Please have your queries answered as follows -

You need to invest Rs 11,500 through monthly SIPs in a good diversified equity fund for 5 years for meeting your sister's marriage goal, assuming returns of 12.5% annualized.

You need to invest another Rs 13,000 per month through SIPs for next 25 years to meet the two goals - Rs 1.50 Crores for marriage of your daughter and Rs 1 Crore for your retirement, assuming annualized returns of 12.5%

Your current monthly SIP is of Rs 11,000 may be sufficient for meeting the goal of your sister's marriage after 5 years, but for meeting the other two goals, you need to start another monthly SIP of Rs 13,000.

However, assuming that the new lump sum investment of Rs 3 Lakhs will be for a period of 25 years, you can easily create a corpus of Rs 57 Lakhs after 25 years. Therefore, you can use this corpus for meeting one of your two goals. Since you are getting this new corpus, let us reduce this from the total target corpus amount of Rs 2.50 Crores. Therefore, you now need to save for the target corpus of Rs 1.93 Crores only. You can reach this target amount by investing Rs 10,000 monthly for next 25 years.

Please also note that even though your fund selection is good, you will not be able to invest in Mirae Asset Emerging Bluechip Fund as it is not accepting any fresh lump sum investment as of now. You can invest in this fund either through SIP or STP route only.

Hope the above helps you ! Thanks for writing to Advisorkhoj !!

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