I am 24 years old. I have recently joined SBI as a PO and am looking to invest in mutual funds. My primary goal is to generate a retirement corpus (at least Rs 1 crore). I would want to invest for next 30 years.
Can you suggest the right scheme or mix of schemes to achieve my goal. Someone suggested top up scheme but I want clarity if I should go with hybrid schemes or equity schemes given I will stay invested for next 30 years.
–Magnus Mayoor Tripathi
Raghvendra Nath, managing director, Ladderup Wealth Management responds:
It’s an excellent thought to start saving and invest money to secure a retirement corpus at early stage of your career. The earlier you start investing, the more the benefit of power of compounding. Since you have 30 years of investment horizon, you have sufficiently high ability to take risk. As per your ability to take risk I would recommend you to have maximum allocation towards equity. Equity markets have a potential to deliver 12-15 pe rcent returns in the long term but tend to be very volatile in the short term. If you want to create a retirement corpus of Rs 1 crore, I would recommend you to start an SIP of Rs 5000 for next 10 years and at the end of 30 years, you may achieve your goal of reaching a retirement corpus of Rs 1 crore. You may start your SIP in Principal Emerging Bluechip Fund and Motilal Oswal Multicap 35 Fund of Rs 2000 each.