How mutual funds will help buy luxurious SUV vehicle?

Feb 24

2 min read

Tags: Wealth Management, Investment Lesson, Mutual Funds, Stock market, Budget, Finance, Investing, Personal Finance, Investment

It is every middle class family’s dream to own a luxurious vehicle especially SUV. How mutual funds can help achieve this dream

How Mutual Funds Can Help You Buy a Luxurious SUV in India

Investing in mutual funds can be a strategic way to accumulate wealth for big-ticket purchases like a luxurious SUV. Here's how you can achieve this goal:

Step 1: Define Your Goal

First, determine the price of the SUV you want. For example, a high-end SUV in India may cost between ₹40 lakh to ₹1 crore.

Step 2: Choose the Right Mutual Fund

To accumulate the required amount, you can invest in equity mutual funds for long-term growth. Suitable options include:

Large-Cap Funds: Stability with moderate returns (~12–15% per annum).
Mid & Small-Cap Funds: Higher risk but potential for higher returns (~15–18% per annum).
Hybrid Funds: A balanced approach combining equity and debt.

Step 3: Investment Strategy

Lump Sum Investment: If you already have a significant amount, investing in a lump sum in an equity fund can yield good returns over 5–7 years.
SIP (Systematic Investment Plan): If you want to invest gradually, you can start with a monthly SIP and let compounding work in your favor.

For example, if you invest ₹25,000 per month in an equity fund with 15% annual returns, you can accumulate around ₹50 lakh in 10 years.

Step 4: Withdraw Smartly

When close to your goal, shift funds to debt mutual funds to safeguard your capital.
Use a Systematic Withdrawal Plan (SWP) or lump sum withdrawal for buying the SUV.

Conclusion

By systematically investing in mutual funds, you can afford a luxurious SUV without taking a loan, avoiding EMIs and interest burdens. Smart planning ensures you enjoy your dream vehicle while keeping your finances secure.

Disclaimer:

The information set out above is included for general information purposes only and is not exhaustive and does not constitute legal or tax advice. All complaints regarding Mutual Fund can be directed towards visit www.scores.gov.in (SEBI SCORES portal). Readers are requested to make informed investment decisions and consult Chaitanya Financial Consultants – 9000628943 / mfd.mmr@gmail.com to determine the financial implications with respect to investing in Mutual Funds.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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