How to make Rs 5 crore for my retirement?

I am 36 years old. I want to invest Rs 15,000 per month in SIP in mutual funds. My net take home salary is Rs 57,000, after deducting tax and EPF of Rs 10,000 per month. Home loan EMI is Rs 17,000 per month. Net balance is Rs 40,000 per month. My monthly expense is Rs 25,000. I want Rs 50 lakh in 15 years for my first child and another Rs 50 lakh in 20 years for the second child's education, and Rs 5 core at the time of my retirement. My retirement age is 60 years. Please suggest the funds and allocation through SIPs.

--Manas Kumar Bharti

You have three long-term goals:

One, Rs 50 lakh in 15 years

Two, Rs 50 lakh in 20 years

Three, Rs 5 crore in 24 years

Since all your financial goals are long term, you can consider investing in equity mutual fund schemes to achieve them. Equity schemes are considered ideal to achieve long term goals because they have the potential to offer superior returns than other asset classes. You have not offered your risk profile. You should choose an equity scheme based on your risk profile.

Assuming an annual return of 12 per cent, you need to invest Rs 9,900 to create a corpus of Rs 50 lakh after 15 years, Rs 5,000 to create a corpus of Rs 50 lakh after 20 years, Rs 30,000 to create a corpus of Rs 5 crore in 24 years.

As you can see, it calls for a large investment to meet all your goals. Here, you can do two things. One, re-assess your goals. Have you just picked up a random figure? If yes, go back and pick a realistic figure and rework the calculations. Two, start your investments immediately. And increase your investments in line with your every salary hike. It may help you to achieve your goals or take them closer.

Here are our recommended equity mutual fund SIP portfolios. Choose a portfolio based on your risk profile and SIP Investment. Best funds to invest in 2018 .

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