How to create a corpus of 4 Crores in next 20 years

1. Your investment in PPF is fine and you should continue with that. I think, you are also claiming tax rebate on your principal and interest amount on monthly Home loan EMI. With PPF and tax benefit on Home loans, you are done with your tax saving.

2. Your fund selection for monthly SIPs - ICICI Prudential Value Discover Fund and HDFC Balanced Fund - both are good funds and can be continued.

3. Now, your main aim is to build Rs. 4 Crores corpus in next 20 years. I must congratulate you that you are thinking of long term wealth creation for meeting your financial goals.

But there is a catch here. Please note that you are thinking of accumulating a corpus of 4 Crores based on today's value. But have you ever thought, what would be the value of 4 Crores in future if you account the inflation @5% - It is actually Rs. 10.61 Crores. Now you have to decide if you want to save for 4 Crores or 10.61 Crores?

Please look at the following scenarios to understand how much you need to save monthly in order to accumulate the corpus?

1. Target 10.61 Crores - expected return 12.50% - Monthly SIP required Rs. 1.03 Lakhs

2. Target 10.61 Crores - expected return 15% - Monthly SIP required Rs. 75,000

3. Target 4 Crores - expected return 12.50% - Monthly SIP required Rs. 40,000

4. Target 4 Crores - expected return 15% - Monthly SIP required Rs. 27,000

Please decide how you want to proceed with the above. For any help, you may refer this calculator https://www.advisorkhoj.com/tools-and-calculators...

With regards to fund selection, my idea is that you should go with Diversified Equity Funds. Please check the SIP returns from here and decide https://www.advisorkhoj.com/mutual-funds...

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