Mutual fund schemes to invest in for building retirement corpus for my spouse
"Assuming your investment horizon is 25 years, an investment of Rs 5,000 per month can build a corpus of Rs 92.91 lakh, at a CAGR of 12%. "
Prableen Bajpai, Founder, Managing Partner, FinFix Research & Analytics says, "Assuming your investment horizon is 25 years, an investment of Rs 5,000 per month can build a corpus of Rs 92.91 lakh, at a CAGR of 12%. Splitting Rs 5,000 into five schemes can result in over-diversification. Opt for two funds at this stage—one midcap and one multi-cap—with an allocation of Rs 2,500 each. While choosing funds, don’t chase the top performers since they change with time. Pick funds that have performed consistently over different market cycles and time periods. One way of doing so is to select a fund that has been in the top quartile on a regular basis. In the mid-cap category, you can consider Axis Midcap, Kotak Emerging Equity and Franklin India PRIMA. In the multi-cap space, you can pick from Kotak Standard Multicap, ABSL Equity and Motilal Oswal Multicap 35 Fund. With the change in the TER of schemes, the difference in expense ratio in direct and regular schemes has reduced substantially, which makes a case to consider a good adviser or distributor. You can consult a fee-based financial planner and invest via direct plans."