Publication details: Money Manager – CNBC Bajar – 14-07-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by Ashish Soni :-
My age is 36 years and monthly salary is Rs. 30,000.
I have a term insurance of Rs. 70 lakhs and a family health insurance of Rs. 10 lakhs.
Following are my future goals:
- Rs. 50 lakhs after 10 years for child’s education.
- Rs. 1 crore after 15 years child’s marriage.
- Rs. 2 crores after 24 years for my retirement.
Please advice me as to which mutual fund I should invest in.
Advice given:
1. Goal 1 – Child’s education
- To have Rs. 50 lakhs after 10 years, you need to invest Rs. 20,000 p.m. in a diversified large cap equity fund, expecting a return of 14%.
2. Goal 2 – Child’s marriage
- For this purpose, you will need to invest Rs. 17,000 p.m. expecting a return of 14%, in the following manner:
- Rs. 10,000 in large cap funds
- Rs. 7,000 in mid cap funds.
3. Goal 3 – Retirement
- As far as your future plan of accumulating Rs. 2 crores for your retirement in a span of 24 years you need to make an investment of Rs.10,000 expecting a return of 14% in asset allocation midcap funds.
4. You do not have the budget and you can see that we need higher amount of investment which may not be immediately possible. Hence:
- Expand the time frame if possible.
- OR you may need to do loan funding and for that you will need additional cashflow in future (which may be possible from increased income).
- OR cut the expectations i.e. revise the goals downwards for now and upgrade as saving potential rises.
