Dear Sreekanth,
Wish you a Happy New Year!
Need your help for my retirement planning.
I am 39 at present and planning to retire by 65. Present investments:
SIP in various fund : 15K /Month Intended for Child Education, marriage etc.
PPF
FD
RD
I have taken Term Insurance & Medical Insurance as well.
No fund allocated for retirement planning as such. Should I go for NPS? I have read your article on NPS where I could understand that it is not the best option. Kindly suggest some fund for SIP for a duration of 15 years only for retirement planning (where return would be more than NPS).
Please suggest
Regards
D Sharma
8 Answers
Dear Mr Sharma,
Happy new year to you too!
NPS & Mutual Funds work in the same way.
But, MFs have more flexibility, highly liquid, more transparent and provide wider choice/options.
If ok, kindly provide the Scheme names that you have already invested in...
Dear Sreekanth,
Presently I am invested in the following funds since 2016:
SBI Bluechip, ICICI Pru Value Discovery, Mirae Asset Emmrg Bluechip, L&T Emmerg Bluechip, Kotak Select Focus, DSP BR Microcap, & Reliance Small Cap.
Please suggest NPS or MF for retirement planning. Kindly suggest some fund for SIP for a duration of 15 years only for retirement planning (where return would be more than NPS).
Regards
D Sharma
Dear Mr Sharma,
The listed funds are decent funds.
But investing in too many especially from the same Fund category can be avoided and it may be really beneficial.
Ex : You have three Small cap funds. Kindly check their Portfolios overlap and can continue with one Small cap alone.
You may make additional investments in the same portfolio for long-term.
Also, do have some allocation to Debt securities (EPF/PPF etc) as part of your Asset allocation and diversification strategy.
Kindly read :
Further related readings :
Dear Sreekanth,
Can you suggest which Small cap fund should I continue among L&t Emmett. Business, Reliance Small cap & DSP BR micro cap?
I have no investment into Debt & Balanced fund. Please suggest one from this category
Regards
D Sharma
Dear Mr Sharma,
L&T Emer Fund has been doing well for the last 2- 3 years comparatively. But, it is a new entry under Small cap fund, launched in 2014.
DSP Small cap/Micro cap has a very long track record.
Another small cap fund which has been very consistent is Franklin Smaller Companies Fund.
As you already own DSP Fund, you may prefer it to other two small cap funds.
Under Debt allocation, you may look at PPF (if you are not contributing to EPF).
Related article :
How to select the right and best Mutual Fund Scheme based on the Measures of Volatility?
Dear Sreekanth,
Thank you for your suggestions.
Please suggest one ELSS fund for long term.
Regards
D Sharma
Dear Mr Sharma,
You may kindly go through my latest article @
Best ELSS Mutual Funds to invest in 2019 & beyond | Why to Pick ELSS Funds for Tax Saving?
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