Do Not Let Your Target Corpus & SIP Amount Deter You

A realistic target corpus and the SIP investments required to achieve the target often break the spirit of many loving parents. 

New age dads and moms are extremely serious about their children’s higher education. However, they face a big hurdle while starting their investments to create a college fund for their progenies. A realistic target corpus and the SIP investments required to achieve the target often break the spirit of many loving parents, say mutual fund advisors. Faced with lack of funds, many parents think of postponing their investments until they have the required until they have the required SIP amount and it could prove a costly mistake, add advisors. 

Needless to say, unrealistic targets often lead to unpleasant episodes. That’s why we ask parents to work with real numbers and inflation to arrive at a realistic target fund. 

However, mutual fund advisors say many parents have a tendency to call it quits when they find out that the target corpus and the SIP amount required to achieve the target are way higher than they had imagined. Going back to the drawing board or waiting till you have the “full amount” are not great options to reach your target, say mutual fund advisors. 

Be it your children’s education or your own retirement, it is always great to start at the earliest with whatever little you have. All you need to do is to increase your investments periodically, say, every time your salary goes up or you manage to save a tidy sum by cutting corners. With such a practical approach, you will almost always succeed, say mutual fund advisors. They point out that even a small amount invested regularly over long periods would help individuals to create substantial funds for their financial goals.