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I am 37 years old. I want to invest in mutual funds for my retirement. (Photo: Reuters)
I am 37 years old. I want to invest in mutual funds for my retirement. (Photo: Reuters)

Mutual funds to create a corpus of 5 crore for retirement

I have gone through a few risk profile assessment tests online and figured out that my risk profile is moderate.

I am 37 years old. I want to invest in mutual funds for my retirement. Which are the best schemes? I have gone through a few risk profile assessment tests online and figured out that my risk profile is moderate. Which are the best mutual funds to save for my retirement? I want a corpus of 5 crore at age of 60. How much should I invest?

-Dinesh Chand

By Divam Sharma, co-founder at Green Portfolio

Considering that you retire at the age of 60, you have 23 years to achieve your investment corpus.

You can achieve your investment goal of a retirement corpus of 5 crore by investing 50,000 per month for the next 23 years and compounding the money at 10% per annum.

Considering that you have a moderate risk return profile, and that you have a long investment period, you should invest 80% of your capital in equity mutual fund schemes, 10% of your capital in gold mutual fund schemes and 10% of your capital in gilt schemes for the next 15 years and then gradually shift 10% of your capital, every year to safe debt investments for the next 8 years.

Currently, you can consider the following schemes:

  • Nippon India Gold Savings Fund- Growth
  • SBI Magnum GILT Fund- Growth
  • Axis Smallcap Fund- Growth
  • Axis Midcap Fund- Growth
  • Nippon India Index Fund-Sensex Plan- Growth
  • Quantum Long Term Equity Value Fund- Growth

We would also suggest that you should keep a regular track on your mutual funds and re-balance 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.

(Views as expressed by the expert)

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