My mom, who’s 49 years previous and presently unemployed, has obtained ₹2 lakh from her provident fund. We have invested this in a liquid fund. What needs to be our funding technique to maximise positive aspects, scale back taxes and construct an excellent quantity for her retirement? What are the completely different avenues of funding and allocation?
— Name withheld on request
If we think about retirement age at 55 or 60 years, you will have time to speculate the cash in additional aggressive avenues which will help you develop it higher. So, your plan to extend the returns on this funding is right.
Depending on your loved ones’s near-term wants, you’ll be able to make investments this cash later as your mom is presently looking for a job. If cheap contingency funds are in place then you can begin investing progressively. You can make investments this cash in fairness mutual funds to build up a retirement corpus on your mom.
To create an excellent retirement corpus, you’ll have to make investments greater than ₹2 lakh. If we assume this ₹2 lakh funding grows at 10% every year it is possible for you to to build up round ₹5.70 lakh until her retirement.
This could be much less to deal with common bills at that stage.
You might also think about beginning SIPs for her retirement when she begins her work once more to create an affordable corpus.
You can put money into the next funds:
— UTI Nifty Index Fund – 25%
— Mirae Asset Large Cap Fund – 20%
— SBI Focused Equity Fund – 20%
— Canara Robeco Emerging Equities Fund – 20%
— UTI Flexicap Fund – 15%
Considering the current situations, you’ll be able to make investments progressively as a substitute of investing the complete quantity in a single go.
One approach to do it’s to speculate 15-20% of ₹2 lakh as and when the inventory market consolidates or just go for SIP within the above funds for six months and make investments the quantity.
Harshad Chetanwala is the co-founder at MyWealthGrowth.com.
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