I want to accumulate Rs.1.2 lakh in two years and can invest Rs. 3,000 every month through Systematic Investment Plan (SIP). Is it possible and what funds can I invest in? - Sundar Sah, Bhubaneswar
It is good that you are considering investing through SIPs in mutual funds. However, be realistic with your expectations as the return required is 47 per cent annually. To accumulate Rs.1.2 lakh after 2 years, assuming return of 9 per cent in the best of fixed return instruments, you will need to invest at least Rs.4,500. Hence, it is not possible to generate the required corpus with the given amount. As you come across as a first time investor, we suggest you invest in funds from the Beginner category of OLM Elite, such as Canara Robeco Balance, Franklin India Taxshield, HDFC Balanced, ICICI Pru Balanced and Religare Invesco Tax Plan. You can invest in any two of them to get a feel of how investments work.
