I am 40 years old and I can invest Rs 1.5 lakh per month. I would like to retire from my corporate job and do something relaxing by the age of 50. What would be the best investment plan for me? Please provide me the specific details. I already have about Rs 2 crore investments in PF, mutual funds and properties.
— Addy Bou
Dinesh Rohira, founder & CEO, 5nance.com, responds:
To provide a proper financial planning advice, I need some more information from you. I need to understand your lifestyle or how much you spend on a monthly basis. It is important to know how much you have saved to meet your emergency needs and the number of dependents. I also need to know how much money you want to make to meet your post-retirement life and your risk profile.
Here are a few things you should do:
- Saving at least 15-20 per cent of your monthly income for emergency purposes
- An investment in a term plan to safeguard dependent family members, if any
- Take a health insurance to protect both you and your family
- Have a proper budget plan for future requirements after your retirement
Now, assuming that you have taken above elements into consideration, the ideal investment that is suitable for you is equity mutual funds. These are my recommendations:
|Scheme name||Category||1-year return (%)||3-year return (%)||5-year return (%)||Allocation (%)|
|Mirae Asset India Equity Fund (G)||Multicap||8.91||12.16||21.41||25|
|ICICI Prudential Bluechip Fund (G)||Largecap||10.09||10.29||17.40||30|
|Principal Emerging Bluechip Fund (G)||Large & Midcap||9.04||14.44||27.35||20|
|L&T Midcap Fund (G)||Midcap||4.72||15.82||29.35||15|
|HDFC Small Cap Fund (G)||Smallcap||16.46||18.75||23.65||10|
I have recommended a few aggressive schemes since you have a long-term investment horizon. You might witness some short-term volatility. However, over a period of time, these mutual fund schemes will deliver a desirable outcome. But the category selection might differ according to your target corpus, which is missing in your question.