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How To Track Target of Rs.1 Crore In Next 15 Yrs:


Ramesh has recently started for saving & investing.For now,he has kept target of Rs. 1 cr within next 15 years.

We will prepare a  flow of valuation on annual basis with some assumptions so that he can track his progress of investment and benchmark his saving & investment against this value on annual basis.

Here we have made assumptions:

  1. Monthly saving & investment: Rs.30,000/-
  2. Net interest rate assumed: 8%.
  3. Compounding Frequency : Annually.

If you are expecting higher or lower rate then for required monthly investment you can refer:

What Should You Invest Per Month To Get The Target Of Rs.1 Crore:

Then target corpus of Rs.1 Crore will be reached in following way.

 

One crore target in 15 yrs

  1. To track the progress of investment,compare valuation with this table.E.g if you have completed 4 yrs and have same goal then if your valuation is around 17 L or more then consider that you are on right track.
  2. If you are lagging in valuation then try to save more next year & try to fill up gap as early as possible.
  3. In case of equity,growth won’t be linear in this way.If lagging, try to cover the gap with some top up investment.
  4. Even though you have irregular cash flow & its not possible for you to invest systematically, use expected value to compare with current valuation.
  5. Consider liquid assets only which can be easily sell out in market like Fixed deposits,mutual funds,shares etc.
  6. If you have different goal in your mind then convert values proportionately.

Category: Fixed Income

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    Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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