Sir, my age is 35 my monthly income is 61 k , married with no child , plan to retire upto 55 , current savings only 1.5 lac, please suggest me how can I invest so make maximum corpus, I know it's late and very less salary and savings ,please suggest

Ans: Planning for retirement income is crucial, especially with a significant corpus like yours. Here's a strategy to generate 2 lakhs per month with your 2 crores corpus:

Dividend-Paying Mutual Funds: Consider allocating a portion of your corpus to mutual funds that focus on dividend-paying stocks or bonds. Look for funds with a track record of consistent dividend distributions. These funds can provide regular income through dividend payouts. However, keep in mind that dividends are not guaranteed and may vary based on market conditions and fund performance.
Systematic Withdrawal Plan (SWP): Set up a systematic withdrawal plan (SWP) with a combination of debt funds, balanced funds, and liquid funds. SWP allows you to withdraw a fixed amount regularly from your investments while keeping the principal amount invested. Choose funds that prioritize capital preservation and have a history of providing steady returns. Adjust the withdrawal amount periodically based on your income needs and investment performance.
Senior Citizen Savings Scheme (SCSS): Consider investing a portion of your corpus in the Senior Citizen Savings Scheme (SCSS) offered by the government. SCSS provides regular interest payouts, usually on a quarterly basis, at attractive rates. It's a safe option for generating stable income, especially for retirees.
Annuity Plans: Explore annuity plans offered by insurance companies. Annuity plans allow you to convert a lump sum amount into a series of regular payments, providing you with a guaranteed income stream for a specified period or for life. Annuities offer security and peace of mind by providing a fixed income irrespective of market fluctuations.
Fixed Deposits (FDs) and Bonds: Consider allocating a portion of your corpus to fixed deposits (FDs) and bonds to diversify your income sources. While FDs and bonds offer lower returns compared to mutual funds and equities, they provide stability and safety of capital. Look for FDs and bonds with competitive interest rates and varying maturities to create a laddered income stream.
Before making any investment decisions, it's essential to assess your risk tolerance, liquidity needs, and income requirements. Consider consulting with a certified financial planner who can provide personalized advice based on your financial situation and retirement goals.

Ans: If your investment horizon is 20 years, then you should be looking at investing in inflation-beating assets like equities. Assuming Rs 36 lakh is deployed into equity (say in a staggered manner over the next 2 years) and you also start investing regularly each month into equity funds, then to reach Rs 10 Crore at average portfolio returns of 10% (assuming a mix of equity and debt), you need to invest about Rs 70-75,000 monthly. Since you would already be investing in PF, etc. via salary deduction every month, the remaining amount can be invested in equity schemes from fund categories like largecap index funds, flexicap funds, midcap funds, etc.

Ans: Assessing Your Financial Goals
You want to build a corpus of Rs. 1.6 to 2 crore by age 50. At 33, you have 17 years to achieve this goal. Your monthly in-hand salary is Rs. 66,820, and you spend around Rs. 38,000 per month. This leaves you with Rs. 28,820 for investments. Let’s plan a strategy to help you achieve your target.

Monthly Savings Allocation
With Rs. 28,820 available monthly, consider diversifying your investments. Diversification helps in balancing risk and returns. Here’s a suggested allocation:

Equity Mutual Funds:
Invest in equity mutual funds for long-term growth. Equity funds have the potential for high returns, which can help in reaching your target corpus.

Debt Mutual Funds:
Allocate a portion to debt mutual funds for stability. These funds are less volatile and provide steady returns. They balance the risk of equity investments.

Public Provident Fund (PPF):
Consider PPF for tax-free returns and safety. It’s a long-term investment with a lock-in period, aligning well with your 17-year horizon.

Benefits of Actively Managed Funds
Actively managed funds involve professional fund managers making investment decisions. They aim to outperform the market. Here are some benefits:

Professional Expertise:
Fund managers use their expertise to select stocks, aiming for higher returns.

Flexibility:
Actively managed funds can adjust portfolios based on market conditions.

Disadvantages of Direct Funds
Direct funds might seem attractive due to lower expense ratios. However, investing through a Certified Financial Planner (CFP) offers several advantages:

Expert Guidance:
A CFP provides personalized advice based on your financial goals.

Regular Monitoring:
They monitor your investments and make adjustments as needed.

Peace of Mind:
Having a professional manage your investments reduces the stress of decision-making.

Investing Through a CFP
Investing through a CFP ensures a comprehensive approach. They consider all aspects of your financial life:

Risk Tolerance:
They assess your risk appetite and recommend suitable investments.

Tax Efficiency:
They help optimize your investments for tax benefits.

Goal-Based Planning:
Your investments are aligned with your financial goals.

Suggested Investment Plan
To achieve your target corpus, here’s a suggested investment plan:

Equity Mutual Funds:
Allocate 60% to equity mutual funds. These funds offer high growth potential.

Debt Mutual Funds:
Allocate 20% to debt mutual funds. These funds provide stability and regular returns.

PPF:
Allocate 20% to PPF. This ensures safety and tax-free returns.

Regular Review and Adjustments
Review your portfolio regularly. Market conditions change, and your portfolio should adapt. A CFP can help with this:

Performance Review:
Check the performance of your funds annually.

Rebalancing:
Adjust your portfolio to maintain the desired asset allocation.

Final Insights
Achieving a corpus of Rs. 1.6 to 2 crore by 50 is attainable with disciplined investing. Diversify your investments across equity, debt, and PPF. Invest through a CFP for expert guidance and regular monitoring. Stay committed to your investment plan and review it regularly. This approach will help you reach your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

You may invest via monthly sip(2.75 L) as follows:

1. Multicap Funds-20%
You may Select any 2 funds from the top quartile

2. Flexicap Funds-20%
You may Select any 2 funds from the top quartile

3. Large and Midcap Fund: 20%
You may Select any 2 funds from the top quartile

4. Small cap fund: 10%
You may Select any 1 fund from the top quartile

5. Balanced advantage fund: 15%
You may Select any 1 fund from the top quartile

6. Multi Asset Allocation fund: 15%
You may Select any 1 fund from the top quartile

Therefore considering your existing MF corpus + FD reinvested in same funds+ sip corpus over 8 years will yield you a cumulative corpus of 20 Cr, as desired.

This is keeping your jewellery and house property aside from retirement corpus consideration.

A modest return of 10% is considered from the combination of mutual fund schemes.

Happy Investing;