My mom, who’s 49 years outdated and presently unemployed, has acquired ₹2 lakh from her provident fund. We now have invested this in a liquid fund. What ought to be our funding technique to maximise positive factors, scale back taxes and construct a superb quantity for her retirement? What are the completely different avenues of funding and allocation?
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If we take into account retirement age at 55 or 60 years, you could have time to take a position the cash in additional aggressive avenues which may also help you develop it higher. So, your plan to extend the returns on this funding is right.
Relying on your loved ones’s near-term wants, you possibly can 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 steadily. You may make investments this cash in fairness mutual funds to build up a retirement corpus in your mom.
To create a superb 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 may be much less to care for common bills at that stage.
You may additionally take into account beginning SIPs for her retirement when she begins her work once more to create an affordable corpus.
You may put money into the next funds:
— UTI Nifty Index Fund – 25%
— Mirae Asset Giant Cap Fund – 20%
— SBI Centered Fairness Fund – 20%
— Canara Robeco Rising Equities Fund – 20%
— UTI Flexicap Fund – 15%
Contemplating the current situations, you possibly can make investments steadily as a substitute of investing your entire quantity in a single go.
One strategy 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.
Supply: Live Mint