Hi Sir, I am 51 years old & start investment in sip of 30k pm since feb 2024 in mid & small cap funds.would like to create corpus of 5 cr for my retirement at the age of 60. How much should save in MF

Ans: It's commendable that you've taken proactive steps towards securing your financial future by starting your mutual fund SIPs.

Here's some advice and guidance tailored to your situation:

Investing 30,000 per month in mutual fund SIPs is a wise decision that demonstrates your commitment to long-term wealth creation.
Diversifying your investments across various mutual funds reflects a balanced approach to risk management and potential returns.
Over a 10-year investment horizon, your disciplined approach to investing can potentially lead to significant wealth accumulation.
It's essential to periodically review and adjust your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance.
Consider gradually increasing your SIP contributions over time to take advantage of the power of compounding and accelerate wealth creation.
While your current fund selection appears diversified, consider consulting with a Certified Financial Planner to ensure your portfolio is optimized for long-term growth.
A professional can provide personalized advice and recommend adjustments to your investment strategy based on market conditions and your individual financial goals.
Remember, investing is a journey, and consistency, patience, and discipline are key to achieving your financial objectives. Keep up the good work, and stay focused on your long-term goals!

Ans: It's great to see your proactive approach towards retirement planning. Let's evaluate your current situation and assess if you're on track to achieve your goal of accumulating a 3 crore corpus by the age of 50.

With a monthly SIP investment of 25,000 rupees across various Mutual Funds (MFs), you're consistently saving towards your retirement goal. Your existing investments of 9 lakhs in MFs, 25 lakhs in PF, and a 3 lakh emergency fund demonstrate a disciplined approach to financial planning.

Diversifying your SIPs across small, large, multi-cap, and flexi-cap funds indicates a balanced investment strategy, spreading the risk across different market segments.

To retire comfortably at 50 with a 3 crore corpus, let's do a quick assessment:

Given your current age of 44 and the desired corpus of 3 crores in 6 years, it's essential to ensure that your investments are aligned with your target.

Considering historical market returns and your monthly SIP contributions, you may need to assess if your current investment amount and asset allocation are sufficient to achieve your goal.

Additionally, factors like inflation, market volatility, and unforeseen expenses need to be considered in your retirement planning strategy.

I recommend consulting with a Certified Financial Planner to conduct a comprehensive review of your retirement plan. They can assess your risk tolerance, investment horizon, and financial goals to make necessary adjustments to your investment portfolio.

Regular monitoring and periodic reviews of your investment plan are essential to ensure that you stay on track towards your retirement goal.

Overall, your commitment to regular saving and diversified investments is commendable. With proper planning and guidance, you're likely on the right track to achieve your retirement aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's commendable that you've been consistently investing in mutual funds through SIPs for several years, laying a strong foundation for your retirement. Let's evaluate your current investment strategy and make adjustments to align with your retirement goal.

Your portfolio reflects a diversified mix of small-cap, mid-cap, and flexi-cap funds, which offer growth potential over the long term. However, given your goal of building a substantial corpus for retirement, we may need to reassess your asset allocation and make some adjustments.

Firstly, let's review your SIP amounts and consider increasing them gradually to accelerate wealth accumulation. Since your SIPs increase by 5% to 10% annually, this incremental growth can boost your investment corpus significantly over time.

Consider reallocating some of your SIP amounts to funds with a proven track record of consistent performance and lower volatility. While small-cap and mid-cap funds can offer higher returns, they also come with increased risk. Diversifying across large-cap funds or balanced funds can provide stability to your portfolio.

Moreover, review your overall asset allocation to ensure it remains aligned with your risk tolerance and investment objectives. While equity investments offer growth potential, it's essential to balance them with fixed-income securities like debt funds or PPF to mitigate risk.

Given your age and retirement horizon, periodically reassess your investment strategy and make necessary adjustments to stay on track towards your goal. Consider consulting with a Certified Financial Planner to develop a personalized retirement plan tailored to your needs and aspirations.

In conclusion, by fine-tuning your investment strategy, increasing your SIP amounts, and maintaining a disciplined approach, you can work towards achieving your retirement goal of building a corpus of Rs 6 - 7 crores by the age of 58.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello;

Current MF corpus(40 L) may grow into 2.19 Cr after 15 years.

You need a sum of 10.5 Cr to generate post-tax monthly income of 3 L.

So for generating balance corpus of 8.31 Cr you may start a flat monthly sip of 1.55 L or begin with a monthly sip of 1 L with 10% step up every year for 15 years.

12% modest return is assumed from a combination of pure equity mutual funds.

A 4% SWP from the corpus(10.5 Cr) invested in equity savings fund with low to moderate risk rating would be apt to generate desired monthly income after tax.

Happy Investing;