Can I create ₹5 crore retirement corpus by investing ₹30,000 per month? | Mint
Active Stocks
Fri Feb 23 2024 09:16:59
  1. Tata Steel share price
  2. 146.35 0.34%
  1. State Bank Of India share price
  2. 764.35 -0.21%
  1. ITC share price
  2. 414.45 0.04%
  1. Wipro share price
  2. 536.45 0.98%
  1. HDFC Bank share price
  2. 1,428.00 0.58%
Business News/ Mutual Funds / News/  Can I create 5 crore retirement corpus by investing 30,000 per month?
BackBack

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.

My current portfolio includes Canara Robeco Emerging Equities Fund, ABSL Frontline Equity Fund and SBI Bluechip Fund . (Photo: istock)Premium
My current portfolio includes Canara Robeco Emerging Equities Fund, ABSL Frontline Equity Fund and SBI Bluechip Fund . (Photo: istock)

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.)

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Mutual Fund news and updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Oct 2020, 07:39 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App