When setting financial goals, investors should take into account short term and long-term goals. Short-term goals could be achieved in a span of two years, whereas long term goals may stretch beyond five years.


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A new investor with a personal finance goal of Rs 50 crore in 20 years raised a query to ET Mutual Funds on Monday.


“I would like to know how much should I invest through SIPs and in which funds to create a corpus of around Rs 50 crore in a span of 20 years, with moderate risk,” the enquiry read.


The expert who responded to the query called the goal ‘unrealistic’.


“Assuming an annual return of 12 per cent, you have to invest around Rs 5 lakh every month through SIPs for 20 years to create a corpus of Rs 50 crore. You might have set an unrealistic goal for yourself. You can try to quantify your various financial goals to get a realistic target corpus, and launch an investment plan to achieve it,” the response read.


While investing in mutual funds is often a sought out investment for its tax saving benefits, it may still attract some amount of tax. The different kinds of tax saving mutual funds can be open-ended, debt/income funds, liquid funds, equity growth and balanced funds.


Though investors will save a grave deal on taxes by investing in these funds, they may still have to pay taxes as applicable.


No tax is levied on long-term capital gains or for those equity mutual fund units that are being held for more than a year.


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