My mom, who’s 49 years previous and at the moment unemployed, has obtained ₹2 lakh from her provident fund. Now we have invested this in a liquid fund. What ought to be our funding technique to maximise features, cut back taxes and construct a very good quantity for her retirement? What are the completely different avenues of funding and allocation?
— Identify withheld on request
If we contemplate retirement age at 55 or 60 years, you’ve gotten time to take a position the cash in additional aggressive avenues which may help you develop it higher. So, your plan to extend the returns on this funding is appropriate.
Relying 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 step by step. You possibly can make investments this cash in fairness mutual funds to build up a retirement corpus to your mom.
To create a very good 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 is able to be much less to handle common bills at that stage.
You might also contemplate beginning SIPs for her retirement when she begins her work once more to create an inexpensive corpus.
You possibly can put money into the next funds:
— UTI Nifty Index Fund – 25%
— Mirae Asset Giant Cap Fund – 20%
— SBI Targeted Fairness Fund – 20%
— Canara Robeco Rising Equities Fund – 20%
— UTI Flexicap Fund – 15%
Contemplating the current situations, you’ll be able to make investments step by step as a substitute of investing the whole quantity in a single go.
One option to do it’s to take a position 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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