Below is an edited transcript of his interview. Also watch the accompanying video.
Q: I can invest Rs 15,000 per month. Presently, I am investing for my daughter, for her marriage and education. I will require Rs 25 lakhs at this moment, but I am not sure how to calculate it after 20 years. Could you tell me which schemes should I invest?
A: First of all, it is commendable that that you are not just thinking of the amount that you need today, but also the fact that inflation will change the amount that you need. So if you take roughly, the need today is about Rs 25-30 lakhs and if you need the money after 20 years with the inflation rate at about 8%, you really would need about Rs 1.3 crore or Rs 1.4 crore at the end of 20 years.
To be able to get that kind of money, assuming you invest in an area that gives you about 14% return, you would need to invest roughly Rs 11,000 every month. You are well within what you want to do. You have said that you want to invest Rs 15,000 every month. I would suggest you spread this over a couple of funds. You could invest 90% in equity, you could also do 5% in PPF and another 5% gold since daughter's marriage is one of your goals. As far as the 90% element is concerned, look at the large caps funds - HDFC Top 200 , Franklin India Bluechip .
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