How to create wealth in the long term?
I have been investing in ICICI Prudential Value Discovery Fund (SIP Rs 2,000) since Aug 2016. I am planning to top up by 10 per cent from August. I plan to start another SIP of Rs 1,000 in SBI Bluechip Fund. I am 32 years old. I want to create wealth in the long term. What is your suggestion?
Kartik Swaminathan, a Certified Financial Planner, responds:
Yearly top-up of 10 per cent is the ideal way of creating long term value and fulfilling your financial goal. ICICI Value Discovery Fund is good fund and you can increase your SIP amount through top-ups. SBI Bluechip fund is largecap fund and you can start SIP in it. You have time in your favour and compounding is the eighth wonder of the world which works best for longer period of time. My suggestion is you continue investing through SIP, increase your SIP amount whenever you can and wait for long period without disturbing your SIP or your investment. You will be happily surprised by the wealth you would create in the end.
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