I’m a 36-year-old physician incomes ₹1 lakh a month. I’ve a ₹42 lakh residence mortgage (EMI of ₹37,000). I need to put money into mutual funds for my son’s training (he’s 4 years previous) and for my retirement. Please counsel good mutual funds with a observe document. I can make investments round ₹20,000-30,000 month-to-month which might be elevated subsequently.
— Name withheld on request
It can be good to have a aim quantity and time horizon on your son’s training and retirement. Usually, for a kid’s training, mother and father want the ages of 16, 18 or 21 years relying on their plans. You can contemplate making a corpus on your son’s training for 12, 14 or 17 years. As you’re a physician, your retirement might not be much like these within the service sector the place they’re sure about their retirement age. However, you may contemplate a retirement age for higher planning.
If we assume your retirement age as 60 and a time horizon of 14 years on your son’s training. In the 14th yr, you’ll be capable to accumulate roughly ₹2 crore by investing ₹30,000 each month and yearly rising the funding by 10%. The corpus is calculated assuming a 12% return p.a. You can use part of this gathered quantity on your son’s training and the remaining on your retirement.
To get higher readability, if we assume you retain apart ₹1 crore on your son’s training and proceed to take a position the remainder of the quantity together with yearly rising SIPs, you’ll be capable to accumulate approx. ₹7.25 crore until the age of 60 on your retirement as nicely. I might counsel you seek the advice of with a monetary advisor for this. However, you might contemplate starting with SIPs of ₹6,000 every in these funds – UTI Nifty Index, Parag Parikh Flexicap, Kotak Emerging Equity, Canara Robeco Emerging Equities and SBI Focused Equity.
You can overview these funds each six months to examine how they’re performing. As your SIP quantity will increase, you might add extra funds. However, attempt to limit this to 8-10 funds.
Harshad Chetanwala is co-founder at MyWealthGrowth.com.
Subscribe to Mint Newsletters
* Enter a legitimate e-mail
* Thank you for subscribing to our e-newsletter.