BackHow to create a retirement corpus of ₹3 crore by investing ₹10 lakh?
What is the best investment strategy to create ₹3 crore for my retirement?Which mutual funds should I invest in?
PremiumI want to invest ₹10 lakh for my retirement. I am 30 years old. Can I create a corpus of ₹2-3 crore when I turn 60 with this much money? Is it possible? Which mutual funds should I invest in? I have a moderate risk profile. Please tell me the best investment strategy.
--Krishna Chenn
By Divam Sharma, co-founder at Green Portfolio
Considering that you have a moderate risk profile and want to invest a lumpsum amount of ₹10 lakh for the next 30 years (considering retirement age of 60), at a compounding of 10% per annum, you can reach a corpus of approx. ₹2 crore.
To achieve investment returns of 10% per annum compounding for the next 30 years, you should invest your money in equity mutual fund schemes. We recommend the following schemes:
- Axis Midcap Fund- Growth
- Nippon India Index Fund-Sensex Plan- Growth
- Quantum Long Term Equity Value Fund- Growth
You can invest your sum equally in these schemes. We would also suggest that you should keep a regular track on your mutual funds portfolio and rebalance them (if required) every year. This would help you understand the current performance of your funds, opportunity cost of alternative mutual funds and the portfolio of investments made by your mutual fund schemes for future growth.
You can refer to a SEBI registered Investment Advisor for any queries related to review of your investment portfolio.
'Spread your sum of ₹10 lakh over a period of few months and invest through systematic transfer plan (SIP) in the recommended funds,' adds Mintdigital.
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