With a current SIP of Rs11,000 and plans to add another Rs 10,000, Manish aims to build a corpus of Rs 1.5 crore over the next 15 years.
He currently invests in ICICI Prudential Nifty 50 Index Fund, Parag Parikh Flexi Cap, and Nippon India Small Cap Fund.
Financial advisor Nisreen Mamaji from MoneyWorks Financial Services validated his selection and offered a roadmap to reach — or even exceed — his target.
She suggested that the additional Rs 19,000 monthly SIP can be smartly diversified:
Rs 5,000 more into Nippon India Small Cap Fund,Rs 7,000 into ICICI Prudential Value Discovery Fund, andRs 7,000 into Franklin India Opportunities Fund.
Based on an assumed CAGR of 13%, this portfolio can potentially grow to Rs1.65 crore in 15 years. If extended to 17 years, it could touch Rs 2.2 crore.
To aim for a precise Rs 2 crore target in 15 years, Manish can consider increasing his SIP by just Rs 6,000, making the total contribution Rs 36,000 per month.
Navigating Market Volatility
Manish’s query comes at a time when Indian equities are experiencing notable volatility, largely driven by global tariff uncertainties and geopolitical developments.
With whispers of retaliatory duties, fluctuating commodity prices, and foreign investor outflows, markets have swung between optimism and caution.
In such uncertain times, many investors are tempted to pause or stop their SIPs, fearing losses. However, this can be counterproductive.
As Mamaji rightly pointed out, one-size-fits-all advice doesn’t work in personal finance, but one principle that holds true is: “Do not interrupt compounding.”
Why Stopping SIPs Is a Mistake
Market corrections — even sharp ones — are not a reason to halt investments. In fact, they often present an opportunity for long-term investors to accumulate more units at lower prices, enhancing the power of compounding.
SIPs help average out the cost over time, mitigating the impact of short-term volatility.
In Manish’s case, consistent investing over 15 years, regardless of market cycles, can help him meet — and potentially exceed — his retirement goal.
Regular reviews and occasional course corrections based on changing financial goals or market dynamics are essential, but abandoning the path mid-way is not.
With the right mix of index, flexi-cap, value, and small-cap funds, Manish is well-positioned for long-term growth.
As the market weathers current uncertainties, his commitment to stay invested and increase his contributions is a reminder for all retail investors: The true power of wealth creation lies in discipline, patience, and the willingness to ride out volatility.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
