45 yrs planning to retire at 60 . Can invest for 15 yrs . Short term goal is after 5 yrs higher education for child and long term goal is after 10 yrs marriage of child . Kindly suggest funds for SIP or lumpsum and how much need to invest to achieve the goals set .
Ans: Planning for your child's education and marriage while also considering your retirement is a thoughtful approach. Given your time horizon of 15 years for retirement, 10 years for your child's marriage, and 5 years for higher education, a balanced investment strategy is crucial.
For the short-term goal of higher education in 5 years, it's advisable to focus on debt-oriented hybrid funds or balanced advantage funds. These funds aim to provide stability with a potential for moderate growth. For the medium-term goal of your child's marriage in 10 years, a mix of balanced funds or aggressive hybrid funds could be suitable, offering a blend of equity and debt to balance risk and return.
For your long-term retirement goal, equity-oriented mutual funds would be ideal, given the longer time horizon. These funds have historically provided higher returns over the long term, albeit with higher volatility.
As for the amount to invest, it largely depends on the expected expenses for each goal. Assuming an average inflation rate of 6% and a return expectation of 10%, you might need to invest approximately:
For higher education in 5 years: Calculate the future value of the required amount adjusted for inflation.
For marriage in 10 years: Similarly, compute the future value considering inflation.
For retirement in 15 years: Estimate your retirement corpus based on your expected expenses post-retirement and the current lifestyle.
Remember, these are rough estimates, and it's essential to review and adjust your investment periodically. It would be prudent to consult with a financial advisor to tailor an investment plan specific to your needs and risk appetite.
