Getty ImagesI want to build a corpus of Rs 3 crore by the time I retire at 55. My risk profile is moderate. I have a stable income, and I am planning to stay invested till my retirement. I have the following SIPs in my portfolio:
SBI Bluechip Fund: Rs 1,000 per month
Nippon India Small cap Fund: Rs 5,000 per month
Also, I have a lumpsum amount of Rs 6 lakh to invest for around five to seven years. Please recommend schemes for lumpsum investment. I started my investments two years ago, and I am 31 years old. Could you recommend me the best SIPs? Also, comment about my current SIPs. What should be my SIP investment to achieve my target by the time I retire.
--Sushant Jain
We ask moderate equity investors to invest mostly in multi cap schemes. If they want to reduce risk further, we ask them to diversify and invest in large cap mutual funds.
Currently, you are investing in a large cap mutual fund scheme and small cap mutual fund scheme. Small cap mutual fund schemes are not in line with your stated risk profile. They are meant for aggressive investors with a very high risk appetite and ability to withstand extreme volatility.
Assuming an annual return of 12%, you should invest around Rs 30,000 monthly to create a corpus of Rs 3 crore in 20 years.
Lastly, do not just choose a random number like Rs 1 crore or Rs 3 crore as a target retirement corpus. Work with real numbers, inflation, taxes to arrive at a realistic figure. For more, watch the slideshow below: Why Rs 1 crore will not ensure a rich retired life
If you do not understand much about investing, you should seek the help of a registered investment advisor.
SBI Bluechip Fund: Rs 1,000 per month
Nippon India Small cap Fund: Rs 5,000 per month
Also, I have a lumpsum amount of Rs 6 lakh to invest for around five to seven years. Please recommend schemes for lumpsum investment. I started my investments two years ago, and I am 31 years old. Could you recommend me the best SIPs? Also, comment about my current SIPs. What should be my SIP investment to achieve my target by the time I retire.
--Sushant Jain
We ask moderate equity investors to invest mostly in multi cap schemes. If they want to reduce risk further, we ask them to diversify and invest in large cap mutual funds.
Currently, you are investing in a large cap mutual fund scheme and small cap mutual fund scheme. Small cap mutual fund schemes are not in line with your stated risk profile. They are meant for aggressive investors with a very high risk appetite and ability to withstand extreme volatility.
Assuming an annual return of 12%, you should invest around Rs 30,000 monthly to create a corpus of Rs 3 crore in 20 years.
Lastly, do not just choose a random number like Rs 1 crore or Rs 3 crore as a target retirement corpus. Work with real numbers, inflation, taxes to arrive at a realistic figure. For more, watch the slideshow below: Why Rs 1 crore will not ensure a rich retired life
If you do not understand much about investing, you should seek the help of a registered investment advisor.
( Originally published on Nov 22, 2019 )
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