MF Guru: With Rs 1 cr, how should I plan my retirement?

Do you have mutual fund queries?

Omkeshwar Singh, head, Rank MF, (external link) a mutual fund investment platform, answers your queries.

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.

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Atharva Mutalik: I'm 22 years old. I want to create a corpus of 3 crore in next 15-20 years. I have following MF currently running from past 1-2 years. I'm a student and studying law and hence can invest only 12k a month maximum. From 2024 I will start earning and can make additional investments or add into existing SIPs.

Please guide me if any changes need to be done. Also am planning to start an SIP in small cap fund. Please suggest on the same.

1. TATA digital India fund growth - 2500 pm

2. Kotak flexicap fund - 2000 pm

3. Mirae asset large cap - 2000 pm

4. ICICI prudential NASDAQ 100 - 2000 pm

5. Gold ETF and Silver ETF - 1k each pm

All the above mentioned are step up SIPs with 10% step up each year

Please guide according to portfolio.

Omkeshwar Singh: No change required

Alok Bhatt: Below is my MF portfolio. I am planning to invest for the next 13-15 years for retirement and as well as my son's higher education who is 4.5 years old. I am 36 years old.

Please let me know if I can consolidate my investments. Apart from this I have investments in PPF, NPS as well.

Omkeshwar Singh: There are too many funds and consolidation can be done by having only 1 scheme in each category.

Shantanu Talashikar: I am 38 years old from Mumbai. I would like to build a corpus of Rs. 5 crore in the next 12 years. My current corpus has already grown to Rs. 30 lakh with the below ongoing MFs.

1. Axis Midcap Fund - 10,000
2. Kotak Equity Opportunities Fund - 10,000
3. PGIM India Felxicap Fund - 10,000
4. SBI Flexicap Fund - 15,000
5. UTI Flexicap Fund - 20,000
6. Nippon India Smallcap Fund - 5,000

Will the above help to achieve my goal or are any changes required?

Omkeshwar Singh: Corpus of 30 lakh and SIP of 70,000 can create a corpus of 3.6 cr

Kartik Mehta: My monthly pay is 125,000 and I split them across 50% for needs, 30% for investment and 20% for emergency fund, liquidity development. 

Hence I can allocate an amount of 37.5k per month for investments. Out this I invest 12.5k per month in PPF and balance 25,000 in 70% equity and 30% debt fund of SBI Blue chip regular and SBI Debt funds. I plan to increase my SIP by 10% annually.

Please advise me if I should diversify more (which I believe I should) and into what funds to build a 10+cr retirement corpus in 30 years 

Omkeshwar Singh: A few schemes that you can consider are:

- UTI Flexi Cap Fund – Growth

- Axis ESG Equity Fund – Growth

- HDFC Index Fund – Sensex Plan – Growth

- Samco Flexi cap Fund - Growth

Kapil Natekar: I am 42yrs old with savings in GPF only. Ready to invest in MF for 20yrs & my Goals being child education 20lakh after 5 yrs & retirement corpus of 2CR. Kindly suggest Mutual funds and SIP amount to achieve above goals.

Omkeshwar Singh: A few schemes that you can consider are:

- UTI Flexi Cap Fund – Growth

- Axis ESG Equity Fund – Growth

- HDFC Index Fund – Sensex Plan – Growth

- Samco Flexi cap Fund - Growth

Ambrish Pani: Am a working executive. I have been investing in SIPS for past 4 years

Below are my investments:

1, SBI bluechip direct - 2000

2. Mirar asset direct - 5000

3. L&T Midcap fund Growth - 2500

4. HDFC S&P 100 - 5000

I want to accumulate a corpus of 5cr in 15 years. I can increase my investments each year by 10% basis my salary increase. Please advise any funds better for long-term investments and your suggestions on my investments.

Omkeshwar Singh: These are good funds, no need to add any new funds

Vedavathi Potukuchi: I've investments in the below funds as SIPs.

1. DSP Mid Cap Fund Direct - 2000
2. NIPPON INDIA FLEXI CAP FUND - DIRECT GROWTH PLAN - GROWTH - 2000
3. NIPPON INDIA SMALL CAP FUND - DIRECT GROWTH PLAN - 2000
4. UTI Flexi Cap Fund Direst - 2000
5. HDFC Mid-Cap Opportunities Fund - Direct - 2000
6. Quantum Long Term Equity Value Fund - Direct - 2000
7. Franklin India Flexi Cap Fund - Direst - 2000
8. SBI Small Cap Fund Direct - 2000
9. Invesco India Multicap Fund - Direct - 2000
10. Mirae Asset Large Cap Fund - Direct - 2000
11. Tata Retirement Savings Fund- Progressive - Direct - 2000
12. Kotak Flexicap Fund - Direct - 2000
13. Kotak India EQ Contra Fund - Regular - 1000
14. Sundaram Large and MidCap Fund - Direct - 2000
15. Canara Robeco Equity Hybrid Fund -Direct - 2000
16. Edelweiss Mid Cap Fund - Direct - 2000
17. Edelweiss Small Cap Fund - Direct - 2000

Could you please let me know which ones to continue and which ones to stop?

Omkeshwar Singh: The funds that can be continued are 1, 4, 5, 8, 10 and 15

BHASKAR TIWARY: I am retiring on 1st December 2022, Retirement amount 1 Cr. What should I do for retirement Planning?

Omkeshwar Singh: You can invest in 4 funds equally, 2 debt funds (Banking and PSU and Corporate Bond Fund) and 2 Hybrid funds in Balanced category.

Should do a SWP of 7% of the corpus for the monthly expenses.

Ashok Kumar: I am investing in MF for more than 1 year. Here is the list of SIPs:

Nippon small cap fund: 6k

Nippon india Growth fund: 2.5k

Kotak Emerging Fund: 2k

Planning to invest Tata Digital Fund 2.5k from next month.

Invested lump sum in:

Nippon ELSS: 60k

Axis Bluechip Fund: 50k

Templeton US opportunities fund: 50k

Need to know:

Is my fund choices correct?

Omkeshwar Singh: Funds are fine

With this investment, a corpus of 1 crore is possible in next 15 years?

Omkeshwar Singh: With Rs 10.5K the corpus that can get created in 15 years is Rs. 65 lakh

Are there any good funds to invest in? I can spare another 3k monthly

Omkeshwar Singh: No need to add any new fund, you can increase the alloction in existing funds.

Abhishek K: I am a 50 year old businessman based in Kolkata. I want to build a corpus of 1 to 1.5 Cr in the next 10-15 years to buy a house.

I have recently started SIP of Rs 10000

PGIM India – Rs 2500

ICIC Prudential Tech – Rs 2500

Canara Robeco – Rs 2500

Axis Small Cap – Rs 2500

What else should I do to achieve the goal?

Omkeshwar Singh: With Rs. 10000 SIP, corpus that can get created is Rs. 60 lakh in 15 years

Read more of Omkeshwar Singh's responses here.

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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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