I am 47 and want to start investing in mutual fund SIPs to build a retirement corpus. I can invest 10,000 per month. Please suggest how and where to invest this sum.
Start by investing 4,000 in HDFC Balanced, 4,000 in Franklin India Prima Plus and 2,000 in debt fund Birla Sun Life Dynamic Bond. Please increase your SIP by 10-20 per cent every year as you have just about 13 years to build your corpus.
(Answered by C.R Chandrasekar, CEO and Co-Founder, FundIndia.com)
I am 25 and earn Rs 50,000 per month. I want to start investing about 20,000-25,000 every month. Please suggest options for the longterm.
Considering your age and investment time horizon, the best option would be to invest in mutual funds via SIPs (systematic investment plans). Since you are just 25 years old, it is advisable to invest a larger chunk of the monthly sum in equity mutual funds and a smaller portion in debt and balanced funds. As much as 80 per cent–20,000–can be invested into equity mutual funds; 10 per cent–2,500-each into balanced and debt funds. The investment into equity mutual funds can be diversified into large, multi, mid and small-cap funds, and tax-saving schemes (ELSS). They will help diversify your portfolio and provide good risk-adjusted returns in the long term.
(Answered by Anil Rego, Founder and CEO, Right Horizons)