Photo: iStock
Photo: iStock

Inflation-adjust your long-term goals

  • It is good to start saving at an early age
  • You can consider mutual funds as the investment vehicle to start the investments

I am 31 years old and got married recently. My wife (29) and I have a combined monthly income of 2.50 lakh. We can invest up to 1.50 lakh a month. These are our financial goals—a flat worth 2.5 crore in 15 years, a car worth 15-20 lakh in the next five years and a retirement corpus of 5 crore by 2046. Please suggest a few schemes as per our different goals.

—Prateek Choudhary

It is good to start saving at an early age. With both of you earning, the savings rate can also be on the higher side, thereby resulting in faster accumulation of targeted corpus. With your expected savings being 60% of your income, which will only increase over time, you are well on course to achieve your desired goals. However, what you need to be careful about is that you have mentioned financial goals on an absolute basis and the said numbers does not prima facie seem to be inflation adjusted. This can be factored by increasing the savings regularly to counter inflation.

The investments can be done via SIP (systematic investment plan) on a monthly basis. Considering your age and the fact that most of your financial goals are long term, except one that is five years away, you should be considering higher equity allocation.

You can consider mutual funds as the investment vehicle to start the investments. The portfolio can be spread within equity across large-caps (Mirae Asset Large Cap fund), multi-caps (Kotak Standard Multi Cap, Mirae Asset Emerging Blue Chip) and mid-caps (Axis Mid Cap, DSP Mid Cap).

Also, you need to be aware of your risk profile and the equity exposure should be subject to that. The debt exposure can be built by having a Public Provident Fund account. At the same time, you should also create a contingency fund for any other short-term needs.

Lastly, ensure that both of you have medical insurance.

Surya Bhatia is managing partner of Asset Managers. Queries and views at