‘How can I earn Rs 2 crores in 10 years?’

Do you have financial planning queries?
Please ask your questions here and Ramalingam Kalirajan, director and chief financial planner, Holistic Investments, will answer them.

JOSEMON: I have only one lakh rupees with me and aged 69; ardently want to grow Rs 3 crore in next one year…

I am sorry. Rs 1 lac becoming 3 crores in 1 year is not possible with investments.

If you take such a risk, there is a high probability you may lose your principal.

Your investments will need to compound to become a huge wealth. Compounding takes place only with time.


Rajesh: Hi Rama Sir, Good day. I am planning to start SIPs (Rs 55K per month) in the following Mutual funds for a horizon of 5-7 years to create 1 corpus.
Could you please review and suggest if they look fine or need any changes/alternate funds? I am fine to take higher risks. Thanks a lot.
Have a Good Day.
Canara Robeco Small Cap Rs 4,000
Nippon India Small Cap Rs 4,000
Quant Small Cap Rs 4,000
HDFC Small Cap Rs 4,000
HDFC Flexi Cap Rs 5,000
Quant Flexi Cap Rs 5,000
Parag Parikh Flexi Cap Rs 5,000
HDFC Balanced Advantage Fund Rs 6,000
ICICI Prudential Balanced Advantage Fund Rs 6,000
Motilal Oswal Midcap Fund Rs 6,000
HDFC Retirements Savings Fund Rs 6,000

Two or three diversified equity funds are sufficient. No need to diversify in 10 funds. You will end up buying the same securities through different funds.

Over-diversification will lead to dilution of returns.


VK: Would like to invest Rs 10 Lacs for 5 years, suggest good yield stock.

Instead of investing in a single stock, you can invest in a few equity funds through STP. It will de-risk your investment considerably by diversification. Managing your portfolio is also easy.

In the long run, it is expected to deliver 12 per cent CAGR.


Madhumohite: I am 49 now and planning to retire by 60.
I have two daughters with age 13 and 6. Need suggestion on investment planning on their education and my retirement income at the age of 60.
Pls advice accordingly

1. Please buy term insurance to cover your life.

2. Take a separate mediclaim policy in addition to the one provided by your employer.

3. Start SIP in mutual funds — 70 per cent in equity funds, 25 per cent in debt funds and 5 per cent in gold funds (this will help you build a corpus for kids’ education and retirement).

4. Review your portfolio with a professional financial planner periodically.


Anonymous: I want to create a corpus of Rs 2 crore for my family in next 10 years.
Could you please suggest some good mutual funds that will help me realise my dreams? Thank you.

Hi, 10 years is a long term.

You can invest in diversified equity funds via lump sum and SIP.

Though it can give you negative returns in the short run, it will give you inflation beating returns in the long run.

  • You can ask rediffGURU Kalirajan Ramalingam your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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