Earn a decent amount for retirement through mutual funds..!?

With the recent increase in awareness about mutual funds in India, here is the answer to the question of how to get the required amount for retirement through mutual funds. According to the information published by Sivans Danduna, Chairman of FinHedge, an investment management company, a person who invests Rs 50,000 per month in SIP for 20 years can earn up to Rs 8 crore in profit. This means that a person investing in SIP for 20 years will have to step up their SIP investment at the rate of 8% every year. Through this, he said that at the end of 19 years, he could get a substantial amount of profit.
He said that there is an opportunity to get more profit when investing in mutual funds which are divided according to the individual's income, age, and risk tolerance. He suggested that choosing an equity portfolio with equal risk over a 20-year horizon would yield good returns. For this, he says 50 percent of investment should be made in large-cap funds. 50 percent investment should be made as these can provide sustainable growth in the long term. Similarly, 25 percent should be invested in midcap funds.He says it would be better to invest 25 percent in mid-cap funds as they have the potential to generate higher returns. Similarly, 25 percent should be invested in small-cap funds. Although these are fraught with risk and volatility, any decline in these would be offset by gains in the other two funds, he said. Thus while investing in mutual fund schemes we often analyze their performance and is this enough to achieve our goal? Or we can decide whether to make any changes in our portfolio and make changes from time to time so that we can get the expected amount in retirement.
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Sowmiya Sriram

30/08/2024 05:36 PM