A 25-year-old Redditor has shared her plans to create a Rs 1 crore corpus in just 5 years. The user revealed that she is currently earning Rs 1.6 lakh per month and wants some advice on investing the money to reach her goal.
“I have a goal of reaching Rs 1 crore by the age of 30, but I'm honestly not sure whether my current strategy is efficient enough or if I'm missing something,” the user posted.
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According to the post, the user currently invests across a range of assets. These include mutual funds, gold, RD and FD. She also spends Rs 20,000 to her family and uses around Rs 35,000 per monthly expenses. She also has an LIC policy that requires Rs 1.3 lakh annual premiums.
25F earning ₹1.6L/month, but still feel like I'm doing something wrong with my investments
by u/No_Access_8978 in IndiaFinance
“After all of this, I still have some amount left each month, but I'm not sure where I should put it or how I should structure my overall portfolio,” the user asked other Redditors.
“My main goal. I want to reach Rs 1 crore by age 30. I have roughly 5 years, so I'd really like to understand: Am I investing too conservatively?” she posted.
Reacting to the viral post, many users praised the Redditor for showing fiscal prudence at such a young age.
“You are investing around 80k per month, after which obviously a lot of cash is also left with you. You are doing pretty well, don't overthink. Enjoy your life. You will reach your goals sooner than you think…,” a user posted.
Some suggested that her FD and RD allocation was too much considering the modest interest they provide. Others suggested she invest in the US market. Some people also suggested the user sort out her health and life insurance before proceeding with further investments.
“Better to park money in liquid and arbitrage funds rather than FDs and RDs - can also be used for short-term goals…,” a user suggested.
Will The User Reach The Target?
Assuming the user invests Rs 32,000 in mutual funds at a 10% annual step-up at 11% average returns, she is likely to end up with Rs 30 lakh corpus after 5 years. She already has Rs 6 lakh saved in mutual funds, which are likely to grow to Rs 10 lakh during this period at the same returns. This means she may create Rs 40 lakh corpus from mutual funds alone.
With gold at Rs 20,000 per month with a 5% step-up and 10% returns, she is likely to have Rs 17 lakh corpus. Her existing gold will grow to Rs 2.4 lakh over this period. This means that the user will have around Rs 60 lakh via gold and mutual funds. The remaining will need to come from RD and FDs, which can be a challenging task.
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But the exact value of the final corpus will depend on factors like broader economic conditions, market situation and her personal goals and risk appetite.
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