How to build Financial Corpus for your needs in India ?

By | February 2, 2019

To meet the desired goal at various stages of life it is very important to build financial corpus in a disciplined way. It is always suggest to start a systematic investments in early years of your career so you enjoy the power of compounding and achieve early Financial Freedom .

Now comes the question , how to build your Financial Corpus.

To build your corpus, your investment should be will diversified into various investments instruments.

Ideally the split should be

  • 40% in fixed return instruments like PPF, RD, FD, Govt bonds etc (The best would to invest in PPF account as they offer a Return of around 8%{better than FD, RD and other govt instruments} and is completely secure)
  • 50% in Mutual Funds( Mix of Large Cap, Multicap, Mid/Small Cap)
  • 10% in stocks of Nifty Blue-chip Companies.

Now lets take a hypothetical example and try building a corpus.

Lets assume a person plan to invest Rs 20,000 at the age of 30 years to build his corpus for financial needs.

 Let say he invest the below amount every month for 2 years

Amount genrated to build financial corpus

Total Corpus at the end of 25 years would be 2.7Cr+76 Lakhs+80 Lakhs will be around 4.25 Crores

So going by the above approach one can build a financial corpus of around 4.25 Crores in 25 years which can be utilized to meet different goals as and when required.It is always suggested to follow a disciplined approach for all your investment needs.

So in a nut shell to build a good financial corpus

  • Start early in your career
  • Diversify your portfolio( Don’t lay all eggs in one basket)
  • And , enjoy the power of compounding.

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3 thoughts on “How to build Financial Corpus for your needs in India ?

  1. Pingback: Best 5 High Interest Rate Saving Accounts in India

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