Do you have mutual fund, insurance and personal finance-related queries?
Please ask your questions HERE to rediffGURU Reetika Sharma, who has an MBA from the ICFAI, and professional certifications from the FPSB, AMFI and IRDAI.
Melvick: Hi My current age is 46 with monthly expenses of Rs 60000. How much retirement amount is required at age of 58 to sustain the amount till 85 with inflation of 10% at that time?
Your current expenses of 60k per month will reach to approx 1.5 lakhs when you turn 58.
Hence you need the corpus of minimum 5 crores to cover your monthly expenses till 85 years of age.
However make sure that other major financial goals are apart from this amount. Otherwise this 5 crores requirement will increase with increase in goals.
Sangram: I have been investing in Quant Multi cap Fund Direct Plan since last 2 years via SIP. However, it's underperforming for a long time. My Investment Horizon is over 10 Years. Should I continue my SIPs or Stop and start fresh SIPs with other fund houses?
Choosing random funds like these always underperform and this fund is one such example.
Stop this SIP for now and start in Axis Large cap. Let this fund remain as it is for another 10 years with only 500 monthly contribution. Do the rest in large cap for 10 years.
Venky: I am a 49 yr old widow working in a private company. I have invested around 4.5 L in ICICI prudential asset allocator FOF regular plan in Jan 2025. Should I continue or redeem this? I want to change this to Direct plan. Should I wait until Jan 2026 to avoid short term capital gain tax? Is investing in Arbitrage direct fund a better option? This is my savings amount and doesn't affect my monthly expenditure or living expenses. Kindly suggest.
Investing a lump sum in random plan is not a good idea and shifting to direct without understanding anything isn't wise either.
This is not an ideal fund for you to invest. Choose a large cap or a multi-cap fund to invest this 4.5 lakhs.
Or consult a professional Certified Financial Planner.
A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.
Shailinder: I am 43 years old from past 2 Years investing in SIP 24K per month SBI small cap regular 8K, motilal oswal small cap 2K, reliance nippon growth small cap 4K, baroda BNP paribhas growth 2500, axis consuption fund 2500, helios flexicap fund 5K is this sufficient or I need to invest more for 2cr corpus also advise if any fund I need to replace?
Mutual funds you mentioned are not at all recommended. Entire selection in of no use and can really destroy your investments. You should consult a professional advisor to design an investment strategy for you. Please stop your current SIPs for now and consult a professional.
A correct selection of funds with a monthly SIP of 24k and annual step-up of 10% can give you 2 crores after 14 years.
Hence get in touch with a professional Certified Financial Planner.
Anonymous: I am a 39 year old living in Bangalore with wife, 2 children (6 year old and 1 year old). My mutual fund (all equity) portfolio is 31 lakh. Current monthly SIP is 50000. Current EPF balance 18 lakh. My wife and I have PPF accounts, whose balance is 40 lakh together. I have an own house and have no plans to construct another. What should be my retirement corpus if I want to retire in 8 years from now? I'm planning to use both PPF accounts money for children education. When should I withdraw my EPF completely? How should I make use of my EPF+SIP money into SWP in order to sustain the corpus till I'm 75? Please suggest.
You have great clarity wrt your investments and goals. Let us address your queries in detail:
1. Planning to use current PPF of 40 lakhs for kids' education. A wise decision but wrong allocation. Returns of 7.1% will not beat education inflation of around 13%. You need to allocate this amount to aggressive funds to get the desired corpus that will require when your kids turn 18 years. Consider moving the entire amount into mutual funds when the PPF matures or you will require additional amount for this goal.
2. EPF: 18 lakhs currently.
3. Mutual funds: Corpus after 8 years will be around 2 crores if you continue investing 50k with 10% step-up for coming 8 years getting a return of 13%.
Total of 2.5 crores can be parked into a mix of equity and debt that could give you an average return of 11%. You can withdraw 1.25 lakhs per month with 4% annual increase forever from this corpus and still leave crores of rupees for your kids. It depends on your annual expenses at that time. You can share more precise details of your monthly expenses for me to help you better.
Also as your MF portfolio is 31 lakhs, it is better to consult a professional to have your investments in alignment to your goals. Hence get in touch with a professional Certified Financial Planner -- a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.
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.
