Latest news with #ParagParikhFlexiCapFund
News18
19-05-2025
- Business
- News18
Want Rs 1 Crore? How Only Rs 4,800 Monthly Saving Can Make You A Crorepati
Last Updated: Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings using SIP and step-up SIP strategies. Securing your financial future should be one of the top priorities, as it reduces stress during the higher ages. For this, saving is a must. The earlier you start saving, the bigger corpus you will end up creating with less effort. Saving your money without investing it anywhere will have a negative effect as inflation will erode away your money over the years. Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings: Financial experts suggest mutual funds (MFs) are one of the effective ways to create your wealth and beat inflation. Investments in mutual funds can be done monthly or lump sum. Monthly investment in mutual funds is called a systematic investment plan (SIP). A step-Up SIP is a systematic investment plan where you increase your monthly investment amount by a fixed percentage each year — let's say, 10 per cent. This helps align your investments with your growing income and reduces the initial burden. The Financial Plan To Reach Rs 1 Crore Target Corpus: Rs 1 crore Expected Return: 12% per annum Investment Horizon: 10, 15, and 20 years Equity mutual funds and index funds in India have historically delivered 10–14 per cent annualised returns over the long term. We use 12 per cent as a conservative yet realistic return assumption. How Much To Invest Monthly — With and Without Step-Up SIP? In order to save Rs 1 crore in 15 years, you need a monthly SIP of Rs 23,000 (without step-up). However, if you raise your SIP by 10% every year, you will require Rs 9,000 per month initially. In order to create a corpus of Rs 1 crore in 20 years, you need a monthly SIP of Rs 4,800 only for the first year. However, it will have to be increased by 10 per cent every year. Here's the table indicating SIP amount (with or without step-up) to create a wealth corpus of Rs 1 crore: Monthly SIP Amount Required to Reach Rs 1 Crore Note: Step-up SIP assumes a 10% increase in monthly contribution every year. Where Should You Invest This SIP? The SIP amount will be invested in mutual funds — flexi cap funds, large- & mid-cap funds, mid-cap funds, small-cap funds, and index funds. These are the classification based on the size or the company and the risk profile of the investor. While index funds typically give an annual return of 12-14 per cent, mid-cap and small-cap can give a CAGR of around 18 per cent in the long term. However, small-cap and mid-cap funds carry relatively higher risk. Some of the popular mutual fund schemes are Parag Parikh Flexi Cap Fund, JM Financial Flexi Cap, Motilal Mid Cap Fund, HDFC Mid Cap Fund Opportunity Fund, Kotak Emerging Equity Fund, Nippon India Small Cap Fund, Axis Small Cap Fund, and Bandhan Small Cap Fund. How to Choose the Right SIP Fund? Tip: For passive investors, Index Funds or ETFs offer simplicity and low cost. Mutual Funds are subject to market risks. They also carry expense ratio, which are charged irrespective of the returns you make. One same mutual fund scheme might have different expense ratio on different platforms — go for cheaper one. There is an exit charge also if you redeem within a particular period, let's say within 90 days. What Will Be The Value Of Rs 1 Crore After 20 Years, 30 Years, and 50 Years? As the years pass, the money loses its value due to inflation. The value of Rs 100 is significantly lower than what it used to be 30 years ago. After 20 years, Rs 1 crore will only be worth about Rs 31.18 lakh in today's terms due to inflation. After 30 years, Rs 1 crore will be worth around Rs 17.41 lakh in today's currency. top videos View all After 50 years, Rs 1 crore will only be worth about Rs 5.43 lakh in today's terms due to the compounding effect of inflation. So, it is necessary to do financial planning after considering the inflation effect. First Published:
Economic Times
02-05-2025
- Business
- Economic Times
Planning to start SIP to buy a house in Bangalore? Experts offer help
Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai. Live Events Sagar Shinde, VP of Research at Fisdom Chethan Shenoy, Director and Head - Product & Research of Anand Rathi Wealth Limited Three Reddit users in the mutual fund community have sparked an online debate with starting their mutual fund investments of which two have a financial goal of buying an apartment in Bangalore within the next 5-10 of these three users, two are above 30 years of age whereas one is 23 years old who has planned to start investment in two flexi cap funds - Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Read | Can a Rs 1 lakh monthly SIP buy you a Bangalore apartment in 10 years? Many users suggested investing in Nifty based index funds, balanced advantage funds, and to add gold funds as well. ETMutualFunds reached out to a few experts who offered help for the first time the first time or to young investors, Dhawan recommends that equity-oriented mutual funds could be a good asset for investment as they can benefit from compounding and at the same time gold should make up a certain portion of their investment, with a view to reducing portfolio volatility with low correlation with other asset classes.'The allocation of gold can increase or decrease to a certain extent based on the key factors that affect gold and mutual funds,' he recommended that to begin their journey, new investors can even start with hybrid funds — which invest in both equities and debt — offering a more balanced, less volatile explained that SIPs (Systematic Investment Plans) in such funds help in developing a disciplined investment habit and gold, while a good hedge, should form only about 10–15% of the portfolio for diversification purposes, rather than being the primary investment Read | Is buying Nifty 50 ETFs on every 1% dip a smart strategy? Mutual fund expert offers help 'For first-time or new investors, the first step would be to figure out your goals and investment horizon. Understand your risk and return objectives and then pick an appropriate asset allocation strategy to be followed in accordance with your risk and return appetite. A mix of equity and debt in the right proportions would be ideal, as they have low correlation with each other and provide portfolio diversification benefits,' Shenoy should always make an investment decision based on investment horizon, risk appetite, and goals.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Mint
01-05-2025
- Business
- Mint
Investment of ₹1 lakh in 2013 in THIS mutual fund would have grown to around 8 lakh now. Check how
It is not uncommon to examine the past returns of a scheme before you decide to invest in it. Typically, investors assess the historical returns of a mutual fund scheme across different time lines before deciding to invest in it. Here, we assess the past returns of Parag Parikh Flexi Cap Fund, which was launched on May 24, 2013. For the uninitiated, a flexi cap fund is the one where fund manager is free to determine the ratio of allocation to stocks across market capitalisation i.e., large cap, mid cap and small cap as long as total exposure to equity and equity related instruments is 65 percent or higher. Tenure ₹ 1 lakh becomes Return (%) 1 year ₹ 1.13 lakh 13.85 3 years ₹ 1.59 lakh 16.88 5 years ₹ 3.75 lakh 30.35 10 years ₹ 4.8 lakh 17.07 Since inception (May 24, 2013) ₹ 7.89 lakh 19.04 As we can see in the table above, if someone had invested ₹ one lakh in Parag Parikh Flexi Cap Fund one year ago, it would have grown to ₹ 1.13 lakh by growing at the rate of 13.85 percent. In three years, the investment of ₹ one lakh would have grown to ₹ 1.59 lakh by delivering a return of 16.88 per cent per annum. And if someone had invested ₹ 1 lakh five years ago, it would have grown to ₹ 3.75 lakh, thus delivering a return of 30.35 percent. In 10 years time, the same invesment of ₹ 1 lakh would have grown to ₹ 4.8 lakh, thus delivering a return of 17.07 percent. And if someone had invested ₹ one lakh at the time of scheme's launch in May 2013, the investment would have grown to ₹ 7.89 lakh, giving an annualised return of 19.04 percent. This 12-year-old scheme has a total asset size of ₹ 93,440 crore as on March 31, 2025, as per the information on PPFAS website. The benchmark index of the scheme is Nifty500. And the scheme is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani and Mansi Kariya. Its constituent stocks include HDFC Bank, Bajaj Holdings and investment, Coal India, Power Grid Corporation, ICICI Bank, Kotak Mahindra, ITC and Maruti Suzuki. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. Visit here for all personal finance related updates. First Published: 1 May 2025, 01:55 PM IST
Time of India
30-04-2025
- Business
- Time of India
My wife will get Rs 3 crore after selling her ancestral property. What is the best way to save income tax and achieve future goals?
Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) As the property is ancestral, the capital gain from its sale will attract 20% LTCG tax with indexation or 12.5% without indexation. Calculating the acquisition cost may involve complexities. Section 54 of the IT Act offers avenues to save or defer LTCG tax, depending on the type of property. Consult a tax adviser to determine the LTCG and explore suitable tax-saving instruments. Instead of investing in capital gains bonds under Section 54EC, which have a five-year lock-in period and low returns of 5.25% per annum, it may be better to pay tax and allocate the proceeds to financial goals and investments. Maintain six months' expenses in bank FDs yielding over 7.5% for liquidity and safety. Next, purchase health insurance of at least Rs 1 crore, with a base health cover of Rs 5-10 lakh and top-up cover of Rs 90-95 lakh for relatively low premiums, to deal with unforeseen medical emergencies. You may purchase term insurance plan(s) covering 20 times your family's annual expenses for ensuring financial security of your dependants in case of the unfortunate event of your untimely demise. Allocate the remaining proceeds in a 60:35:5 ratio across flexi-cap, multi-asset, and gold funds through 12-18 month SIPs. You can consider the direct plans of Parag Parikh Flexi Cap Fund and/or HDFC Flexi Cap Fund for the flexicap category; Nippon Multi Asset Fund and/or ICICI Prudential Multi Asset Fund for the multi-asset category and SBI Gold Fund and Aditya Birla Sun Life Gold Fund for exposure to you are not planning to save on capital gains tax from this transaction, you can simply invest the proceeds. However, if you intend to claim tax exemption under Section 54 of the Income Tax Act, the house purchase must be completed within two years of the sale. Alternatively, you can invest in 54EC bonds, which have a lock-in period of five years. If you are comfortable paying the tax now and your goal is to let the investment grow until 2030, a balanced 50:50 mix of equity and debt may be suitable. For equity, consider index funds based on the Nifty 50 or Nifty Midcap 150, or active funds like Parag Parikh Flexicap. For debt, look at short-, medium-term, and floating rate debt funds such as Aditya Birla Sun Life Floating Rate Fund, ICICI Prudential Short Term Fund, and HDFC Corporate Bond Fund—under the growth our expertsHave a question for the experts? etwealth@
