I am Shibu, 52 years old, earns 35,000-00 per month [Private Sector], I wish to contribute an lumpsum amount of Rs. 10,00,000-00 at the end of 60 years old. its for my retiring life, I have no pension option and get Provident Fund minimum pension. kindly suggest which funds for using this acheivement through SIP
Ans: Given your goal to contribute a lump sum of Rs. 10,00,000 at age 60 for retirement, you have approximately 8 years to accumulate this amount.
Here's a suggested approach:
Investment Strategy:
Opt for diversified equity funds with a track record of consistent performance.
Consider a mix of large-cap, mid-cap, and multi-cap funds to spread the risk.
SIP Amount:
To achieve Rs. 10,00,000 in 8 years, you'll need an SIP amount that grows at an annual rate of around 15% (assuming average market returns).
Risk Tolerance:
Since retirement is your goal, it's essential to understand and be comfortable with the risk associated with equity investments. Ensure your investment aligns with your risk tolerance.
Regular Monitoring:
Review your portfolio regularly to track progress towards your goal. Adjust your SIP amount or portfolio if needed.
Tax Efficiency:
Opt for Equity Linked Savings Schemes (ELSS) to avail tax benefits under Section 80C, which can be an added advantage.
Remember, while equity investments have potential for higher returns, they also come with market risks. It's crucial to have a balanced portfolio and consult a financial advisor to tailor a plan that suits your needs and risk profile.
