personal finance

Which mutual funds are good to create a corpus for my retirement after 25 years?


I am 32 years old, recently married. I have pretty much no investment until now, barring a couple of life insurance plans. Could you please help me get a low down on investments? I want to invest between Rs 10-15,000 a month in mutual funds. I am thinking of SBI Bluechip Fund, ICICI Prudential Bluechip Fund and HDFC Midcap Fund. Please advise. My goals include generic saving and to accumulate for my retirement. My investment horizon will somewhere around 25 years. My risk appetite is mid to high.
–Srikant Kodali

Raghvendra Nath, managing director, Ladderup Wealth Management responds:

Since you are only 32 years old, have a long-term investment horizon, and ability to take risk is high, you should have maximum allocation to equity mutual funds for your retirement. However, you should note that the equity markets are quite volatile in the short to medium term where your portfolio can go down by 20 to 30% or more. But with high risk, it has delivered good returns of above 12-15 per cent CAGR in the long term. Your thought to start investments in mutual funds is good where you have professional fund manager managing your investment portfolio. To invest monthly Rs 10,000 to 15,000, I would recommend you to start an SIP. As far as fund selection is concerned, the funds selected by you are managed well but I would recommend you to select one large cap fund, one mid cap fund and one small cap fund which would help you diversify across market cap and sectors. I would recommend you to go ahead with ICICI Pru Bluechip Fund which is a large cap, HDFC Midcap fund and one small cap fund Franklin India Smaller companies.





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