Getty ImagesI am an IT professional. I am 29 years old. I want to plan for my retirement. I am planning to invest Rs 20,000 every month via SIP. Can you suggest which funds I should invest?
I want to invest in one moderate and one aggressive fund.
–Harsha Veeramaneni
You seem to be not familiar with the basics of investing in mutual funds. You should choose mutual funds based on your goal, horizon, and risk appetite. For example, a conservative investor should invest mostly in large cap mutual funds. A moderate investor may choose flexi cap mutual funds. The basic idea is not choose schemes based only on the return potential. Always focus on your investment objectives and risk profile. Avoid taking unnecessary risks. Gain knowledge and experience before investing in risky options. Higher risk always don't mean high returns, it also means a lot of volatility and often short-term losses.
Also, be mindful about the impact of inflation on long-term goals like retirement. Assuming an annual return of 12%, you may be able to create a corpus of around Rs 3.79 crore in 25 years. The amount may seem large, but it may lose its value after 25 years. Always invest maximum you can every month. Aim to invest at least 30% of your income.
Best Large Cap Funds
Best Flexi Cap Funds
I want to invest in one moderate and one aggressive fund.
–Harsha Veeramaneni
You seem to be not familiar with the basics of investing in mutual funds. You should choose mutual funds based on your goal, horizon, and risk appetite. For example, a conservative investor should invest mostly in large cap mutual funds. A moderate investor may choose flexi cap mutual funds. The basic idea is not choose schemes based only on the return potential. Always focus on your investment objectives and risk profile. Avoid taking unnecessary risks. Gain knowledge and experience before investing in risky options. Higher risk always don't mean high returns, it also means a lot of volatility and often short-term losses.
Also, be mindful about the impact of inflation on long-term goals like retirement. Assuming an annual return of 12%, you may be able to create a corpus of around Rs 3.79 crore in 25 years. The amount may seem large, but it may lose its value after 25 years. Always invest maximum you can every month. Aim to invest at least 30% of your income.
Best Large Cap Funds
Best Flexi Cap Funds
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