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Ramalingam Kalirajan |7621 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Chirosunder on Apr 26, 2024Hindi

I am 36 years old. i want to invest rs. 7500 per month for 12 years to get per month rs. 20 thousand as a pension scheme. can you give me a suggestion where should i invest?

Ans: Your aspiration for a pension scheme is commendable, and it's wise to plan for your future financial security at an early age. Considering your age and investment horizon of 12 years, let's explore suitable options to achieve your goal.

Given your preference for a monthly pension of Rs. 20,000, you would need to accumulate a significant corpus over the investment period to ensure a sustainable income stream post-retirement.

While traditional pension plans and annuities offer guaranteed income, they may not provide optimal returns considering inflation and taxation. Additionally, they often lack flexibility and liquidity.

Instead, you may consider investing in a combination of mutual funds and other growth-oriented assets to build a substantial corpus over time. Equity-oriented mutual funds have historically delivered higher returns compared to traditional investment avenues, making them suitable for long-term wealth creation.

You can allocate a portion of your monthly investment towards equity mutual funds, which offer the potential for capital appreciation over the long term. To mitigate risk, diversify your portfolio across large-cap, mid-cap, and multi-cap funds based on your risk tolerance and investment objectives.

Simultaneously, consider investing in debt mutual funds or fixed-income instruments to provide stability and generate regular income post-retirement. These investments can serve as a source of passive income to supplement your pension.

Moreover, systematic investment planning (SIP) allows you to invest a fixed amount regularly, ensuring discipline and consistency in your investment approach. By staying invested over the long term and leveraging the power of compounding, you can potentially achieve your desired pension goal.

However, it's crucial to periodically review your investment strategy and make necessary adjustments based on changing market conditions and your evolving financial goals.

In conclusion, by adopting a diversified investment approach tailored to your risk profile and investment horizon, you can work towards realizing your goal of a monthly pension of Rs. 20,000. Consider consulting with a Certified Financial Planner for personalized advice and guidance to optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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