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    Best mutual funds to create a retirement corpus in 25 years

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I am trying to build my mutual fund portfolio to cover my expenses in the future. Please review my portfolio - it includes index funds, multi cap funds and large cap funds. I am planning to increase my investments by 6%.

    For kids education
    Total 4 mutual fund folios: 2 index funds and 2 multi cap funds.
    Rs 5,000 per month in each. These are for 4 milestones which are 7, 9, 12 and 14 years from now. Risk profile for this goal is moderate.

    For retirement
    2 mutual fund folios : 1 large cap fund, 1 multi cap fund.
    Rs 10,000 per month in each. This is to build Rs 7 crore corpus in 25 years. I just started investing in NPS (Rs 10,000 per month). Risk profile for this goal is aggressive.

    Also please suggest about:
    1. Best Mutual funds to invest in. (based on the parameters like alpha, AUM, sharpe ratio, etc)
    2. Whether all the fund houses support the increase in SIP amount?
    ---Tilak

    Ashish Modani, Founder, SLA Financial Solutions, responds:


    There are some good and not so good part in your questions. Let me start with the good. Good part is that you are starting with a goal in mind and those goals are reasonably well defined (though they can still be defined better). You mentioned about the corpus for your kids' higher education and your retirement. However, you have not mentioned the requirements either in terms of the present cost or future cost. Also, you have mentioned the desired retirement portfolio.

    The not-so good part is your desire to have the best mutual funds. When you are investing for multiple decades, it is not possible to predict which fund is going to be the best for so many years. No one can predict which scheme is going to be better or the best. One can surely say about schemes history and by looking at all its statistics like Alpha, Sharpe Ratio etc, but it will all say about its past and nothing about its future.

    JM Large Cap Fund-Growth ★★★★★
    Things You should consider
    • Annualized Return
      for 3 year: 4.48%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.0 Years
    The best investors focus on what they can control, not what they cannot. They focus on asset allocation, not fund allocation. They know that their behaviour would be the decisive factor for their success over the long run. I would ask you to pick schemes with a consistent track record. You haven’t mentioned any schemes, so can’t comment on them.

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    1 Comment on this Story

    satya ranjan nayak209 days ago
    Assuming your current age is 35 years. For your child's education in different situations like 7, 9, 12, 14 years. you like to do part wise investment. For your retirement in 25 yrs investment with 10k monthly sip, you can't reach on your 7 cr corpus. you need to maximize your sip investment I,e up to 37k per month.
    Here is your portfolio...
    child's education...
    1.mirae Largecap - 7 years goal
    2.parag parekh Lt equity - 9 years goal
    3.axis focused 25- 12 years goal
    4.kotak emerging equity - 14 years goal
    For your retirement...
    1.sbi focused equity 40%
    2.mirae bluechip 40%
    3.axis smallcap 20%
    stay continue witg your nps scheme .
    These mf schemes are good for your future investment, your both goals are long term. So, keep investing in them, you can reach your goal.
    The Economic Times