Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Money / Personal Finance/  How to build a 3 crore corpus to start a business?
BackBack

How to build a ₹3 crore corpus to start a business?

You need a monthly investment of ₹1.15 lakh to reach your goal of ₹3 crore. While it is not easy to reduce your expenses from ₹1 lakh to ₹45,000 per month, you can consider another strategy.

The corpus amount of ₹3 crore will ask for a much higher investment. Premium
The corpus amount of 3 crore will ask for a much higher investment.

I am a 35-year old professional with a monthly income of 1.6 lakh and expenses of nearly 1 lakh. My wife is a homemaker and our son is 3 years old. I have close to 14 lakh in mutual funds right now. Is it possible to build a corpus of 3 crore in 10 years so that I can start my consultancy then.

—Name withheld on request

The corpus amount of 3 crore will ask for a much higher investment. If we assign your present portfolio of 14 lakh for this goal at 10% per annum (p.a.) growth, it has the potential to reach approximately 36 lakh at the end of 10 years. If we assume a 12%p.a. returns it can be 43.5 lakh. At present, your potential to invest is 60,000 per month and if you keep investing the same amount every month for the coming 10 years, you will be able to build a corpus of 1.2 crore at 10% p.a. and 1.33 crore at 12% p.a.

You need a monthly investment of 1.15 lakh to reach your goal of 3 crore. While it is not easy to reduce your expenses from 1 lakh to 45,000 per month, you can consider another strategy. You can increase the monthly investments every year by 20% to reach the desired goal amount. In such a case, you need not compromise on your savings or expenses and get the opportunity to increase the investment as you grow in your career in the coming years. Here are some funds that you can consider investing in.

Also read: Why accurate investment declaration is important

UTI Nifty Index Fund (15%); ICICI Prudential Bluechip Fund (15%); Parag Parikh Flexicap Fund (15%); HDFC Flexicap Fund (15%); 360 One Focused Equity Fund (15%); Kotak Emerging Equity Fund (15%); and Nippon India Small Cap Fund (10%)

Harshad Chetanwala is co-founder at MyWealthGrowth.com

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Apr 2024, 07:43 PM IST
Next Story footLogo
Recommended For You