01 November 2023
Diversify To Amass Target Corpus
D. Das, Bhubaneshwar
My son is a 29-year-old engineer. His annual income is Rs 14 lakh. He has been investing for the last three years directly in large-, mid- and small-cap stocks for Rs 6,000, Rs 4,000, and Rs 4,000, respectively. He also has a monthly systematic investment plan (SIP) of Rs 10,000. Besides, he invests Rs 50,000 each in National Pension System (NPS), Public Provident Fund (PPF), life insurance plan, and Rs 11,000 in a health insurance policy annually. How should he proceed for his retirement goal of Rs 10 crore by 2054?
It is not clear if your son has been investing in large-, mid- and small-cap stocks as a one-time purchase or via SIPs.
If he has invested the above amounts of Rs 6,000, Rs 4,000, and Rs 4,000, in large-, mid- and small-cap stocks as a one-time purchase and holds them till 2054 then it would result into a corpus of approximately Rs 6.6 lakh at an...