• Rs. 1 lakh one time or Rs. 5000 per month diversified Equity Mutual Fund.


I have gone through the mail from bajaj capital. How did they arrived to this calcuation. Can anyone please clarify ,is that good source to invest.

Contents paste from website below :

Did you know?

If your monthly expenses are Rs. 30,000 today, these will be Rs. 80,000 per month after 20 years?*

In order to cover shortfall of your income in future, you have to beat inflation. Just invest Rs. 1 lakh one time or Rs. 5000 per month in the growth schemes of diversified Equity Mutual Fund through the systematic Investment Plan (SIP) of diversified Equity Mutual Fund (Growth Scheme). Your amount is likely to grow to around Rs. 2 crore or more in due course of time. When you get Rs. 2 crore, you can invest some amount in Goverment Schemes and some amount in Diversified Equity Mutual Fund (Dividend pay-out options) and can hope to get an average return around Rs. Two lakh per month, without spending your capital amount, which will take care of your higher expenses at that time. (This can even continue for your next generation also)

*Inflation assumed @ 5% per annum

9 Answers

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1 Ashal Jauhari May 24, 2013 at 11:28 am

Dear Dev, the actual corpus after 20Y, can be less than 2Cr. or more than 2Cr. So read this info from Bajaj with a pinch of salt. :)




2 Syamantak May 24, 2013 at 11:36 am

“in due course of time” – this due course can be 20 yrs and can even be 40 yrs :-)


3 Mehul Sharma May 24, 2013 at 11:37 am

I m surprised if in 20 yrs any equity fund can get you around 2 cr. did they mentioned any fund name to invest in??


4 Mehul Sharma May 24, 2013 at 11:38 am

I m surprised if in 20 yrs any equity fund can get you around 2 cr. did they mention any fund name to invest in??


5 Dev May 24, 2013 at 11:44 am

They mentioned as ” diversified Equity Mutual Fund (Growth Scheme).” Not specific to any funds. So i thought of asking our experts and sharing information.

How one time investment of Rs 1 Lac will give this much yield of 2Cr or less,.

Is lumpsum investment give good returns on par with SIP. ?


6 Ramesh May 24, 2013 at 11:48 am

Additionally, 2L per month = 24L per year on a corpus of 200L translates to a 12% interest return, WITHOUT capital expenditure and going into the next generation. That is plain ‘castles in the sky’.

No time frame given.
And doesnt inflation affect post-2crore period?


7 Ashal Jauhari May 24, 2013 at 12:18 pm

Dear Dev, for very long period of time, lump sum can provide better return than SIP. SIP is not a magic tool in itself, it’s a vehicle to comelete your journey with a discipline. No matter you invest 1L Rs. lump sum or 5K mly (roughly 12L Rs. in next 20Y or 240 months), let’s calculate the rate of return offered to you in this advt. from bajaj.

The 1L Rs. should earn around 30.3% return year on year to make it 2Crore in next 20Y. For 5K mly SIP you should earn around 23.78% yly.

Now do tell me, can you keep earning such returns from your invrestments from here onwards for next 20 years?




8 Lakshmipathy G May 24, 2013 at 5:52 pm


Your Calculations for the exact returns showed the exact reality. Thanks.


9 Ashal Jauhari May 24, 2013 at 6:11 pm

Dear Lakshmipathy, the numbers don’t lie. Yes we can interpret the numbers as we want to. :)




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