–Aman Agrawal
Assuming an annual return of 15%, you will be able to create a corpus of Rs 65.68 lakh by investing Rs 2,000 every month for 25 years. Yes, you are right that your actual investment would be Rs 6 lakh (Rs 2,000 x 300). Equity mutual funds qualify for long term capital gains tax on investments held over a year. Long term capital gains of over Rs 1 lakh in a financial year are taxed at 10%.
You should seek the help of a mutual fund advisor if you don’t know the basics of mutual funds and investing. Here are some pointers that may give some rough ideas of investing in mutual funds, impact of inflation, taxes, etc. One, you should always choose mutual funds based on your goals, horizons and risk profile. For short term goals that need to be achieved quickly, you should always invest in debt mutual funds. You should invest in equity mutual funds to achieve your long term goals. Further, depending on your risk profile, you should final your schemes.
You should always opt for a goal based investment strategy. Always try to find how much money you need to achieve a goal. If it is long-term goal like retirement, you should always find out how much money you would need to achieve the goal with the impact of inflation. For example, Rs 65 lakh might sound big today. However, it might lose considerable value after 25 years.
