Giving back to society, worry-free

Investments in SIPs and in schemes with good performance track record have helped

Many dream of becoming successful entrepreneurs; their start-ups sometimes become unicorn companies. There are also those who are keen about giving back to society even as they grow.

One such person is the Chennai-based, 26-year-old, techie, Sai Jagadish, whose life goal is to start a social venture to enrich the lives of the needy.

“I currently work for an American IT multinational and have been employed for the last two years,” says Jagadish. “I have always wanted to do something for the underprivileged. I plan to pursue my social aspirations without having to compromise on the family finances,” he says. He wants to build a corpus of ₹5 lakh over the next 10 years, to be able to start his social venture.

He also plans to buy a house eight years from now. He wants to save ₹40 lakh for that. “I don’t want to borrow money to buy a home but buy it out of my savings,” he says.

Investments at a glance

His net monthly salary currently is ₹24,800 and he spends about ₹4,600 every month towards food and travel.

He has ongoing systematic investment of ₹4,500 every month in two mid-cap schemes. He currently has a monthly surplus of ₹15,700.

His total mutual fund investment across mid- and large-cap oriented schemes till date amounts to ₹2.97 lakh.

He also started investing in stocks around six months back and has about ₹85,000 in large and mid-cap stocks. He has ₹24,000 parked in a bank FD scheme which will mature next month. He also has an emergency fund of ₹53,000 in his savings bank account.

Sai Jagadish currently resides in an apartment owned by his father, who works for a private company; his mother is a home-maker. He has a younger sister. His parents are financially independent and, hence, Jagadish does not have any financial commitments towards his family as of now.

Jagadish plans to buy a house in 2026 and wants to save ₹40 lakh for that.

His current monthly surplus of ₹15,700, if invested in a combination of large-cap and mid-cap oriented schemes over the next eight years, should help him accumulate about ₹32 lakh.

This is assuming that the investment fetches him 12 per cent annualised return and his investible surplus increases by 8 per cent every year.

His ongoing monthly systematic investment of ₹4,500 should grow to about ₹7.3 lakh by 2026, assuming a 12 per cent annualised return on the investment.

Besides these, Jagadish’s FD maturity corpus of ₹24,000 will be available next month.

This, if invested in a diversified large-cap equity mutual fund scheme, can fetch him about ₹0.6 lakh by the end of the eighth year, assuming 12 per cent annualised returns. These should help him fund his home purchase.

Social initiative

For his social initiative, Jagadish wants to have a corpus of ₹5 lakh by 2028. His systematic investment of ₹20,200 (which includes ongoing SIP of ₹4,500 and proposed saving of his monthly surplus of ₹15,700) over 2026-2028 should help him accumulate ₹5.5 lakh by the end of 2028, which can be used for his social initiative.

Besides these, Jagadish’s current MF investment corpus of ₹2.97 lakh should grow to ₹9.2 lakh by the end of 2028, if we factor in an annualised return of 12 per cent.

And his current equity stock portfolio of ₹85,000 should be worth ₹2.2 lakh by 2028, if he can manage annualised returns of 10 per cent.

These can be used either to meet his additional capital requirement for the social initiative or to build his retirement corpus.

Besides his ongoing systematic investment in HDFC Midcap Opportunities and Franklin India High Growth Companies, Jagadish can consider investing in schemes with good performance track record and large-cap skew such as Aditya Birla Sun Life Frontline Equity, Mirae Asset India Opportunities Fund, ICICI Pru Focussed Blue Chip and Invesco India Growth Fund.

The author is co-founder, RANA Investment Advisors

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