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POSTED BY ON November 8, 2013 7:14 pm COMMENTS (2)
Hello,
I am 31 years old now, and want to have significant corpus by the time I retire at the age of 58.
Last month I started 3 SIPs each of value INR 10K in HDFC Top200, Birla MNC, ICICI Focused Bluechip equity funds, all with ‘Growth’ option. My initial plan is to run these SIPs for 5 years, then hold the folio till I retire. After 5 years, I will either choose to start 3 new SIPs for the next 5 years or resume the old SIPs. I intend to repeat this till I retire.
Is this retirement planning strategy sound or even make sense? Please provide your valuable feedback.
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Balaji,
You have selected good performing mutual funds and they can give you good returns if continued for long term. But it is never advised to completely depend on equity dependent investments for retirement corpus.
As you are only 31 years old and have around 27 years of saving time,currently it will be good to have around 80-100% in equity related investments.But keep reducing that proportion and try to increase your investments into fixed return schemes.
When you are near to your retirement,then it’s better and safe to have at least around 40-80% amount into fixed return schemes based on your risk criteria.
Just make sure that you are tracking the performance of these funds once in 6 months or so.. Rest all is good