I want to invest Rs 5,000 per month in mutual funds. I have just entered college. I am 19-years-old. How much wealth can I create by investing Rs 5,000 every month in a good mutual fund for 15 years?
By Divam Sharma, Co-Founder, Green Portfolio
I congratulate you on this decision to start investing so early in your life. Starting early and making a habit of investing in a disciplined manner through systematic investment plan (SIP) is the best way to create wealth from mutual funds.
You can invest via SIP in the following mutual fund schemes equally:
Axis Bluechip Fund (G)
Kotak Emerging Equity Fund (G)
Tata Small Cap Fund (G)
Nippon India Value Fund (G)
ICICI Pru Sensex India Fund (G)
Considering returns of 12 per cent CAGR on your investments, and a consistent investment of Rs 5,000 per month through SIP, you can create a wealth of over Rs 25 lakh after 15 years.
You should track your mutual funds factsheet on a monthly basis and should rebalance your portfolio whenever required.
You can also consider taking an advice from a SEBI registered Investment Advisor for planning your financial goals and calculating your risk profile before investing.