Can I create ₹5 crore retirement corpus by investing ₹30,000 per month?
I am a 33 years old government employee. I want to create an amount of ₹5 crore or higher, when I turn 60.
I have invested in mutual funds for my retirement. I am a 33 years old government employee. I want to create an amount of ₹5 crore or higher, when I turn 60 (my retirement age). I am investing in a few equity mutual funds for the purpose. My current portfolio includes Canara Robeco Emerging Equities Fund, ABSL Frontline Equity Fund and SBI Bluechip Fund. I am investing ₹10,000 each in these equity mutual fund schemes on a monthly basis. Can I achieve my target of creating a corpus of ₹5 crore by the time I retire after 27 years? Should I add more equity mutual funds to my investment portfolio? As far as I understand, my risk profile is moderately aggressive. Which equity mutual fund schemes should I add to my current portfolio? Should I remover any of the above mentioned schemes from my portfolio?
- Kishana G Tam
By Prableen Bajpai, founder & managing partner, Finfix Research & Analytics
You have an investment horizon of 27 years. An investment of ₹30,000 should be able to generate a corpus of close to ₹6 crore assuming a 11% compounded annual growth rate (CAGR). You are currently investing in two large cap and one large and mid cap fund. You can continue with Canara Robeco Emerging Equities Fund, which is a large and mid cap fund. However, instead of two large cap funds, you can simply invest ₹10,000 in an index fund tracking Nifty 50. The remaining ₹10,000 can be split into one mid cap and one international fund.
(Views as expressed by the expert.)
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First Published:9 Oct 2020, 07:39 AM IST
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