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Rediff.com  » Getahead » Ask MF Guru: 'How to plan for retirement?'

Ask MF Guru: 'How to plan for retirement?'

By OMKESHWAR SINGH
August 11, 2021 08:54 IST
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'I have been investing in various mutual funds over last two years.
I am currently 32 and plan to continue investing for next 22 years minimum to create substantial corpus for child's future and retired life.'

Illustration: Uttam Ghosh/Rediff.com
 

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:


Avinash Khobragade: I am 50 years old interested in Retirement Planning. What amount should be invested in MF SIP so as to get 50,000 Rs per month after 10 years? Please suggest good Mutual Funds to invest.

Omkeshwar Singh: Rs. 80 lakhs corpus will be required at your retirement for Rs. 50K withdrawal per month. This corpus will be invested in a combination of Hybrid and Debt funds so that the withdrawal can be perpetual with reasonable growth in the corpus as well.

To create a corpus of Rs. 80 lakhs in 10 years the monthly investment that would be required will be Rs. 32,500 (@13% per annum).

Yash Zanwar: I invest 1.25 lakh per month in SIP. These include both Debt and Equity investments. Below is the SIP spread across different days in a month.

I want your advice to help me reduce the number of funds and which once to increase and which to exit.

My monthly SIPs:

1. Aditya Birla Sun Life Frontline Equity Direct Fund-Growth - 5k

2. SBI Magnum Medium Duration Fund Direct -Growth - 22k

3. HDFC Corporate Bond Fund Direct Plan - Growth - 23k

4. Axis Long Term Equity Direct Plan-Growth - 5k

5. Aditya Birla Sun Life Tax Relief 96 Direct-Growth - 5k

6. Mirae Asset India Equity Fund Direct- Growth - 7k

7. Mirae Asset NYSE FANG+ ETF FoF Direct - Growth - 5k

8. Motilal Oswal Nasdaq 100 FOF Direct - Growth - 11k

9. Kotak Standard Multicap Fund Direct-Growth - 7k

10. Mirae Asset Emerging Bluechip Fund Direct-Growth - 2.5k

11.HDFC Index Sensex Direct Plan-Growth - 13k

12.Mirae Asset Hybrid Equity Fund Direct-Growth - 7k

13. Axis Bluechip Fund Direct Plan-Growth - 8k

14. Franklin India Prima Direct Fund-Growth - 5k

Omkeshwar Singh: You may continue with 4, 7, 8, 10, 11 and 13.

Abdul Azeez: I am 30 years old. Want to accumulate a wealth of Rupees 4 Crores by 2040. Please give your valuable input on the below mutual funds that I would like to invest in.

Mirae Asset Emerging Bluechip Fund Direct Growth 2500

Canara Robeco Emerging Equities Fund Direct Growth 2500

Axis Long Term Equity Direct Plan Growth 1500

Invesco India Tax Plan Direct Growth 1500

SBI Focused Equity Fund Direct Plan Growth 2500

Parikh Flexi Cap Fund Direct Growth 5000

Canara Robeco Emerging Equities - Direct Plan – Growth

Axis Bluechip Fund Direct Plan Growth 5000

Mirae Asset Large Cap Fund Direct Growth 5000

DSP Mid Cap Direct Plan Growth 2500

Kotak Emerging Equity Fund Direct Growth 2500

Total 30500

Omkeshwar Singh: Rs. 35000 per month is required to create a corpus of Rs. 4 crs in 20 years.

The funds are fine, however too many funds are there so consolidate them in one in same category i.e. ELSS, Large and Mid cap and mid cap ones.

rahul tandon: Hope you are doing well. I am a doctor but a very late start in career.

Though not much knowledge about mutual funds but after doing lot of reading I have started some SIPs in the following sector so that I can save some for myself and children. Kindly let me know your views on it and any changes if needed. I have started investing from last year. 

ICICI prudential Blue chip G - 5000

ICICI Equity and debt fund G - 4000

SBI Focused equity direct fund G - 5000

Total 14000 per month 

I am not a person who can take much risk and tend to invest for 10 years 

Omkeshwar Singh: Please continue

Abilash Amar: I am 36 years old. My aim is to create a corpus so that I can generate 1 lakh per month via debt fund for expenses in the future. 

I have been investing in the following MF since last year

BNP Paribas India Consumption fund 5000

Kotak Focused Equity Fund 5000

Mirae Asset Focused Fund 8000

Sundaram Equity Fund Reg-G 5000

Parag Parikh Flexi Cap Fund 4000

Invesco India Growth Opportunities Fund 4000

My question is how much corpus do I need in a debt fund to create 1 lakh per month and how long will it take to create that corpus with the above investment? Are there any changes I can make to reduce the duration?

Omkeshwar Singh: The minimum corpus that would be required is Rs. 2 crs considering 6% returns on debt fund.

Your investment is of Rs. 31000 per month and it would take nearly 16 years to create a corpus of Rs. 2 crs.

Rakesh Babu: I have been investing in various mutual funds over last two years. I am currently 32 and plan to continue investing for next 22 years minimum to create substantial corpus for child's future and retired life. Below is my portfolio on monthly, please suggest further:

Axis Blue chip 2000Rs 

Mirae Asset Emerging blue chip fund 3000Rs

Parag parikh cap fund 5000Rs

SBI small cap fund 5000Rs 

Total Amount invested monthly 15000Rs

Also I want to increase every year 1500Rs 

Can you suggest better funds?

Omkeshwar Singh: These are good funds, please continue

shubhanshu choudhary: I had started investing in sip through Invesco @₹5000 per month since last 2 years and my plan for investing is for 20 years my sip is in Invesco contra fund, should I continue in this or there are any better fund available in market as I wanted to be safe and right now I am 27 year old and want to target at least 50lakh plus amount.

Omkeshwar Singh: This fund is fine, however better funds are available in Axis ESG Equity Fund - Growth or UTI Flexi cap fund – Growth.

Ankush Pawar: Hope you are doing well in this covid times. 

I have started SIPs in following MFs:

1)Parag Parikh flexi cap -regular growth- 10000

2)Nippon india Pharma fund direct growth- 5000

3)Axis bluechip fund direct growth- 20000

4)UTI flexi cap fund direct growth- 10000

5)Nippon india large cap fund direct growth- 8000

Total 53000

I am 35 years old. 

I am planning to do SIP of total 1 lakh. Can you advise whether above investment is okay and what more mutual funds should I invest in to make it 1 lakh total

Omkeshwar Singh: 1, 2, 3, 4 are fine, and for further investment below funds can be considered

  1. Axis ESG Equity Fund – Growth
  2. Motilal Focused 25 Fund – Growth
  3. ICICI Pru US Bluechip Equity Fund – Growth
  4. DSP Quant Fund - Growth

Avishek: I have started investing in following MFs from 2020 November. None of these are SIPs but I keep adding around 2000-3000 every month as lump sum investment. Please suggest if following funds will be able get me 1.5 crore corpus by 2034.

Kotak Gold Fund

Axis Blue-chip Fund

Axis Small Cap Fund

Edelweiss Greater China equity offshore

ICICI pru asset allocator fund FoF

Motilal Oswal Nasdaq 100 FOF

Parag Parikh Multi cap Fund

Axis midcap index fund

Quant Active Fund

If you may suggest weightage % on each fund on basis of 25k each month.

Omkeshwar Singh: 20 % in Axis Bluechip and rest 10% each

Deo Prakash: I request your guidance and advice. Need 2 crs plus corpus in next 15 yrs. What needs to be done for that. Currently running these SIPs.

Omkeshwar Singh: Details missing

Pranav Pillai: I am 24, and I have started investing in mutual funds 500 rs a month and will gradually increase the amount (will be investing around 4000-5000 next month onwards).

1. Axis bluechip fund direct plan 

2. icici prudential technology direct 

If I have to accumulate 1-1.5 Cr by the age of 40 what amount of investment would be required and what kind of MF should I invest in. Willing to take moderate to high risk. Kindly advise a plan for the same. Also, is smallcase a better option than MF?.

Omkeshwar Singh: To create a corpus of Rs. 1-1.5 crs in 16 years the monthly investment required is Rs. 16,000-Rs 24,000 respectively,

Depending upon the expertise you may choose between direct equity or MF.

Sandesh Marathe: I am 30 years old. I am investing in Mutual funds from 2013. I have started SIPof Rs. 2000/- in Sundaram Mid Cap fund – Gr; also have some investment in below funds

1. HDFC Mid cap Opportunities 

2. AXIS Mid cap funds

My target is to achieve 2-3 crores at retirement age.

Kindly guide me if any changes required.

Omkeshwar Singh: To create a corpus of Rs. 2-3 crs in 30 years the monthly investment required is Rs. 4,500 -Rs 6,500 respectively.

It’s better to have a flexi cap, mid cap and a small cap fund

Jai Shankar: I am 42 years old and I would like to have INR 2 Cr. corpus in say 10 years. Can you tell me how much I need to invest per month and where (please give specific fund names in each category Sir than just saying debt fund or growth fund)? I know you don’t prescribe specific but you can at least pls say these 2-3 funds are good in this specific category etc. Please help.

I don't have any investments in mutual funds or equity on date.

Omkeshwar Singh: You would be required to make Rs. 80,000/- monthly investment in equity mutual fund for 10 years to create a corpus of Rs. 2 crs.

Ashley Rosario Fernandes: Below is my portfolio. Would highly appreciate if you can suggest if it is good or any changes required? Total current investment in SIP is Rs 12,000 (Which now I want to make it Rs 15K) kindly advise a good additional SIP for investing 3K monthly. Also let me know if the MF in lump sum are good? Or any changes required. I am now 45 years of age and my total savings as of date is Rs 13 Lacs only. Kindly advise how much more investment would I have to make to collect a good amount for my son's education and retirement - I have 2 son's aged 12 and 8. My current salary is Rs 1.5 Lacs and wife is also working with a salary of 30 K. Also I keep breaking SIP and lumpsum in between for emergency use. Let me know if that will affect my long terms plans of collecting funds

SIPs:

NAME OF MUTUAL FUND AMT INVESTED PER MONTH - (LONG TERM)

Axis Focused 25 - Growth - RS - 2,OOO /-

ICICI Prudential Focused Equity - Growth RS - 2,OOO /-

HDFC Top 100 - Growth RS - 2,OOO /-

Kotak Standard Multicap Fund - Growth RS - 2,OOO /-

L&T Midcap - Growth RS - 2,OOO /-

Motilal Oswal Multicap 35 - Growth RS - 2,OOO /-

LUMPSUM

NAME OF MUTUAL FUND AMT INVESTED LUMPSUM - (LONG TERM)

DSP Focus - Growth RS - 1 LAC (INVESTED IN APRIL 2016)

ICICI Pru Long Term Eq Fund ( Tax Sav) - Growth RS - 1 LAC (INVESTED IN APRIL 2016)

Kotak Bluechip Fund - Growth RS - 1 LAC (INVESTED IN APRIL 2016)

Nippon India DYNAMIC BOND FUND - Growth Plan RS - 1 LAC (INVESTED IN APRIL 2016)

Mirae Asset Focused Fund - Growth RS - 50K (INVESTED IN AUG 2019)

Mirae Asset Midcap Fund - Growth RS - 25K (INVESTED IN AUG 2019)

Omkeshwar Singh: Prudent approach is to have the family covered for medical and life with pure insurance product.

Post that, create a corpus for emergency fund that should be 6 month of monthly expenses.

Only post that investment is recommended.

Depending upon your cash flows, mode of investment can be SIPs or lumpsums; however, SIPs are recommended.

Existing funds are okay; for further investment Axis ESG Equity Fund – Growth or UTI Flexi Cap fund – Growth can be considered

UDAY SHAH: I have following SIP in the mutual fund and advice whether to continue or not?

1. Axis Bluechip Fund Growth - Rs 2000

2. HDFC Balanced Advantage Fund Growth - Rs 3000

3. HDFC Top 100 Fund Dividend - Rs 3000

4. Nippon Growth Fund - Rs 5000

5. ICICI Bluechip Fund - Rs 3000

6. ICICI Equity & Debt Fund - Rs 3000

I invested in Sundaram Rural India fund regular growth for a lump sum amount of Rs 2,00,000 & L&T Emerging Business Fund Growth for an amount of Rs 2,00,000 each and holding it currently since January 2018. Please advice whether I sell or Hold?

Also, I want to Start SIP in Nippon Small Cap Fund of Rs 5000 per month.

Omkeshwar Singh: You may start.

Please give your best suggestions and advice.

Omkeshwar Singh: Please continue with the portfolio and review it after 6 months. 


If you want Mr Singh's advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Ask MF Guru', along with your name, and he will offer his unbiased views.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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OMKESHWAR SINGH / Rediff.com