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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Feb 10, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Asked by Anonymous - Feb 01, 2024Hindi
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I am 43. Got divorced recently. Lost all my savings in PF and gratuity. My NTH is approximately 2 lacs. I have 17 years to my retirement. How much should I invest each month to have a decent corpus. In my terms , any one today who has a corpus of about INR 2.5 to INR 3 Cr is decent. Likewise after 17 years what will be a decent amount ?

Ans: As per inputs received from you, you will require an amount of Rs. 3 Cr for your retirement after 17 years, considering the current inflation rate of 6% and the portfolio returns of 12%. Please find the below data for your reference

• Investment Time Horizon – 17 Years
• Corpus Requires at age 60 – Rs. 3,00,00,000 (Today’s Value)
• Inflated Value at 60 age – Rs.8,10,00,000 (Approx.)
• Amount Required Today (One Time) – Rs. 1,20,00,000 (Approx.)
• Monthly Amount Required Today – Rs. 1,25,000 (Monthly SIP)

For proper financial planning, we request you to connect with your financial planner.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Asked by Anonymous - May 09, 2024Hindi
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Hi Sir, I am 38 Yrs old , I am earning 1.3 L Per Month , if I wants to make corpus of Rs. 2 Cr on my retirement - how much should I invest and give me different suggestions along with MF
Ans: Planning for your retirement at 38 is a wise decision, and aiming for a corpus of Rs. 2 Crore demonstrates a clear vision for your financial future.

Understanding Your Goal:

To achieve a corpus of Rs. 2 Crore by retirement, several factors need consideration, including your current age, income, risk appetite, and investment horizon.

Determining Investment Required:

To calculate how much you need to invest monthly to reach your goal, we must consider factors such as expected rate of return, inflation, and investment duration.

Savings vs. Investments:

Given your monthly income of Rs. 1.3 Lakh, you could allocate a portion towards savings and investments. By investing a significant portion in mutual funds, you can potentially accelerate the growth of your retirement corpus.

Investment Strategies and Mutual Fund Suggestions:

Systematic Investment Plan (SIP): You can start a SIP in equity mutual funds with a diversified portfolio. Allocate funds to large-cap, mid-cap, and small-cap funds to spread risk and maximize returns over the long term.

Debt Funds: Alongside equity funds, consider investing in debt funds to provide stability to your portfolio. Debt funds offer steady returns and can act as a hedge against market volatility.

Balanced Funds: Balanced funds, also known as hybrid funds, invest in a mix of equity and debt instruments. They offer a balanced risk-return profile, making them suitable for investors with moderate risk tolerance.

Sectoral Funds: For investors willing to take higher risks, sectoral funds focused on specific industries can provide opportunities for significant capital appreciation. However, they come with higher volatility and should be approached with caution.

Regular Funds vs. Direct Funds:

Consider investing through a Certified Financial Planner who can provide personalized advice and assistance in selecting the right mutual funds. Regular funds offer the advantage of professional guidance and ongoing portfolio management, ensuring your investments align with your financial goals.

Calculating Monthly Investments:

To determine the monthly investment required to reach a corpus of Rs. 2 Crore by retirement, we need to consider factors such as expected rate of return and investment duration. A Certified Financial Planner can help you calculate this figure based on your specific circumstances and goals.

Final Recommendations:

Investing in mutual funds is an excellent way to build wealth for retirement, given their potential for long-term growth and diversification benefits. However, it's crucial to develop a well-rounded investment strategy tailored to your risk tolerance and financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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