Want to make Rs 5lac by investing Rs 2k PM is it Possible????

[praveen taneja]

Friends I want to make Rs 500000/ by investing in MF SIP only in two funds Reliance Growth fund and Reliance vision fund that too in dividend option:clap:
Investment size is Rs 1k pm in both funds
Reason for chosing dividend option is getting profit out and reinvesting that Tax free return on every correction Is it Possible????? lets see
My first Investment for April is on 20/04/2010
Reliance Growth fund =Rs 1000/
Units 18.145 @55.1101
Reliance Vision Fund = Rs. 1000/
Units 24.262 @41.2167
Date I chose for SIP is 28th of every month and time frame is 5Years when My son would be in college and I need money then for his higher studies
I would post my Fund value on 15th and on First of every month:clap:
Lets see is this Possible:thumb:
God bless us all

 

[drsambu123]

Achieving 5 lacks is bit unrealistic. U can get somewhat around 2 lakh if 15% compunded annual growth rate. In future do not choose 2 funds from same fund house...

 

[Shilpa.Magdum]

any investor must have realistic goals while making any investment

 

[praveen taneja]

Achieving 5 lacks is bit unrealistic. U can get somewhat around 2 lakh if 15% compunded annual growth rate. In future do not choose 2 funds from same fund house...

any investor must have realistic goals while making any investment

Unrealistic????????????:lol:
It is my first investment of 2k and u declare it unrealistic
would post every quarter what is my position and whever have doubt would post my folio no with detail but would pm only
Nowadays paise waale ki jeet hai and RMF is the richest MF as per I know
earlier too in SIP and STP I got good profit and this time TOO I know by the grace of god I would achieve my tgt lets see:clap:
God bless us all:thumb:

 

[AW10]

Praveen Bhai. I admire your financial planning and the action that u are taking for it.

To answer the question of this thread - Is it possible ?
In my view - NO. (plz don't take it as offense but I am speaking with some logical here. Your thread has pushed me to my excel sheets).

Due to following reasons
- For investment of 2000 PM, for 60 months.. to become 5 Lac, we need to have consistent monthly return of 4% per month
- For investment of 6000 per qtr, for 20 Quarters.. to become 5 Lac, we need to have consistent monthly return of 12.5% per Quarter
- For investment of 24000 per year, for 5 years.. to become 5 Lac, we need to have consistent monthly return of 52% per year

I haven't come across any fund which has consistently given this level of performance over long period. Both these funds have 5yr return of below 30%.

Certainly, past performance is no gurantee of future return but you are giving tough
target to Sunil Sanghania and Ashwin Kumar fund managers.

-----
Extending it further, if we increase the per month contribution to 4500 rs. (i.e. 20 rs of pocket money for each day when he goes to school), outcome will be more realistic.

To make 5Lac - we need monthly return of 1.9% , quarterly return of 5.5% and yearly reutrn of 21%..
These numbers are more realistic and well within the past track record of these funds.

Anyway. give it a try now and review the performance it after few months.

How about handing over this portfolio to your son after 2 / 3 years. Atleast he will learn to manage his funds.. and become better fund managers then Ashwin/Sunil or Praveen.

all the best. and happy investing.

 

[nikrod]

Praveen Bhai. I admire your financial planning and the action that u are taking for it.

To answer the question of this thread - Is it possible ?
In my view - NO. (plz don't take it as offense but I am speaking with some logical here. Your thread has pushed me to my excel sheets).

Due to following reasons
- For investment of 2000 PM, for 60 months.. to become 5 Lac, we need to have consistent monthly return of 4% per month
- For investment of 6000 per qtr, for 20 Quarters.. to become 5 Lac, we need to have consistent monthly return of 12.5% per Quarter
- For investment of 24000 per year, for 5 years.. to become 5 Lac, we need to have consistent monthly return of 52% per year

I haven't come across any fund which has consistently given this level of performance over long period. Both these funds have 5yr return of below 30%.

Certainly, past performance is no gurantee of future return but you are giving tough
target to Sunil Sanghania and Ashwin Kumar fund managers.

-----
Extending it further, if we increase the per month contribution to 4500 rs. (i.e. 20 rs of pocket money for each day when he goes to school), outcome will be more realistic.

To make 5Lac - we need monthly return of 1.9% , quarterly return of 5.5% and yearly reutrn of 21%..
These numbers are more realistic and well within the past track record of these funds.

Anyway. give it a try now and review the performance it after few months.

How about handing over this portfolio to your son after 2 / 3 years. Atleast he will learn to manage his funds.. and become better fund managers then Ashwin/Sunil or Praveen.

all the best. and happy investing.

Agree with AW10. Return of 48-50% for period of 5 years is bit unrealistic. Currently Reliance Diversified Power has CAGR of 40.49% for last 5 years, highest among the equity peers.

50% plus return is not unheard of though. Specially in bull run during 2003-2008 Jan, many funds gave these sort of returns. But over the long tenure you should expect both bull & bear cycles. Over 10-15 years the realistic expectation should be 20%

my two cents.

 

[praveen taneja]

Bro you are right it is not easy to get but actually what I planned is dividend option as both are good dividend paying funds and use all dividends to avg out in all corrections and I hope with that I can reach my tgt baaki Allah Maalik:thumb:
I am using this system for many of my clients and it is giving good return lets see it work on me or not:clap:

 

[praveen taneja]

Today 3rd May 2010 My SIP portfolio stands at>

My first Investment for April is on 20/04/2010
Reliance Growth fund =Rs 1000/
Units 18.145 @56.1163 Current Value is 1018.23Rs
Reliance Vision Fund = Rs. 1000/
Units 24.262 @41.7772 current value is 1013.60 Rs.
SIP date is 28th this month so would update on First june after next instalment

 

[savkar]

Good vision Praveen. I did some research and would like to highlight just for information sake. I have tried to peek into history with almost similar requirements that you have for your future. i evaluated the history of the mutual fund that you plan to invest in

i have 2 past scenarios for reliance mutual vision fund

scenario 1
2k amount invested per month from may 2002 to may 2007.
here a total investment of 1,20,000 returned back 4,41,000

Scenario 2
2k amount invested per month from may 2003 to may 2008.
here a total investment of 1,20,000 returned back 3,00,000

Scenario 1 was a dream bull run.
scenario 2 was part of dream bull run and part bear
But there is a significant amount of difference in returns.
Also till today scenario 2 has not been able to reach the returns of scenario 1 inspite of 2 bull runs and 1 bear run

So with this above example, your future requirements will be true if:
1. The same dream bull run repeats from today till 5 years down the line
2. The mutual fund performance remains more or less the same
3. Most importantly you time the market perfectly so that you maximize profits

How optimistic you are that all 3 of the above points will hold true ?

Let me know your thoughts on the same

Friends I want to make Rs 500000/ by investing in MF SIP only in two funds Reliance Growth fund and Reliance vision fund that too in dividend option:clap:
Investment size is Rs 1k pm in both funds
Reason for chosing dividend option is getting profit out and reinvesting that Tax free return on every correction Is it Possible????? lets see
My first Investment for April is on 20/04/2010
Reliance Growth fund =Rs 1000/
Units 18.145 @55.1101
Reliance Vision Fund = Rs. 1000/
Units 24.262 @41.2167
Date I chose for SIP is 28th of every month and time frame is 5Years when My son would be in college and I need money then for his higher studies
I would post my Fund value on 15th and on First of every month:clap:
Lets see is this Possible:thumb:
God bless us all

 

[praveen taneja]

Good vision Praveen. I did some research and would like to highlight just for information sake. I have tried to peek into history with almost similar requirements that you have for your future. i evaluated the history of the mutual fund that you plan to invest in

i have 2 past scenarios for reliance mutual vision fund

scenario 1
2k amount invested per month from may 2002 to may 2007.
here a total investment of 1,20,000 returned back 4,41,000

Scenario 2
2k amount invested per month from may 2003 to may 2008.
here a total investment of 1,20,000 returned back 3,00,000

Scenario 1 was a dream bull run.
scenario 2 was part of dream bull run and part bear
But there is a significant amount of difference in returns.
Also till today scenario 2 has not been able to reach the returns of scenario 1 inspite of 2 bull runs and 1 bear run

So with this above example, your future requirements will be true if:
1. The same dream bull run repeats from today till 5 years down the line
2. The mutual fund performance remains more or less the same
3. Most importantly you time the market perfectly so that you maximize profits

How optimistic you are that all 3 of the above points will hold true ?

Let me know your thoughts on the same

Thnk you bro for taking so much pain for me God bless u:thumb:
Now as per my experience I know mkt is never one sided and ups and downs are there and track record of dividend of these two funds show that If I use dividend of these funds to avg in all good correction which comes at least once every year I can get more units at lower rate
I did that for many of my friends earlier too but my purpose of posting here is to check what are my mistakes as I know most of you guys knows more then me Lets see what is in store but all i know is strategy is so far fool proof as used practically for last 3 years Now one request can u check all dividends and add them for averaging in thee two scenerio?????????
Bro I know its too time consuming but take ur time and if possible pls do it for benefit of all Thanx in advance god bless us all:thumb: