Can a 56-year-old meet their retirement goal of Rs. 2 lakhs/month with a Rs. 60,000 monthly investment?

Ans:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

These funds will provide for the life requirements, however for the retirement corpus when you reach 57 / 58 years in age to reduce the volatility in the corpus shift to Debt Funds (Couple of Banking and PSU and one Corporate Bond Fund) along a Hybrid Balanced advantage fund

Ans: A basket of Diversified Equity Fund and Hybrid should be considered (all growth options):

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• Edelweiss Balanced Advantage Fund
• ICICI Pru Balanced Advantage Fund

Ans: Given your age, retirement horizon, and investment capacity, you have a good opportunity to build a substantial corpus for your retirement. Here's a general approach to selecting mutual funds for your SIP:

Diversified Equity Funds: These funds invest across various sectors and market capitalizations, providing you with diversification and growth potential. Given your 19-year horizon, you can consider allocating a significant portion of your investment to diversified equity funds.
Mid-cap and Small-cap Funds: These funds have the potential to offer higher returns over the long term, but they also come with higher volatility. As you have a long investment horizon, you can consider allocating a smaller portion of your portfolio to mid-cap and small-cap funds to boost returns.
Large-cap Funds: These funds invest in large, well-established companies that are typically more stable but offer moderate returns. They can be a core part of your portfolio to provide stability.
Balanced Advantage Funds: These funds dynamically manage equity and debt allocation based on market valuations. They can be suitable for investors who want to participate in equity markets but with lower volatility.
Index Funds or ETFs: If you want to track the market, you can consider investing in index funds or ETFs that mimic the performance of a specific index. They generally have lower expense ratios and can be a cost-effective way to invest.
When selecting specific mutual funds:

Performance: Check the historical performance of the fund compared to its benchmark and peers.
Fund Manager: An experienced and skilled fund manager can make a difference. Look for consistency in performance under the current fund manager.
Expense Ratio: Lower expense ratios can significantly impact your returns over the long term.
Asset Under Management (AUM): A reasonably sized AUM indicates the trust of investors in the fund. However, extremely large funds might find it challenging to generate high returns.
Remember to review and rebalance your portfolio periodically, ideally at least once a year, to ensure it aligns with your financial goals and risk tolerance. Given the importance of this decision, it might also be beneficial to consult with a financial advisor who can provide personalized advice based on your specific situation and goals.

Ans: Considering your critical goal of your retirement after 13 (Age 60) years, I suggest you to put the amount through SIPs in a well-diversified portfolio of 5-6 equity oriented Large and Mid-Cap funds with not more than 20-20% allocation each category. You can also invest in solution-oriented fund i.e. retirement fund.

Note: Mid-cap fund can face volatility in initial 4-5 years but once the fund will get stabilized in your portfolio, you can expect 12-14% returns from these category of funds. Doing so will help you accumulate maximum requirement for your retirement corpus.