I am 57 and have three properties in my name. This includes one worth Rs 4 crore with an outstanding loan amount of Rs 1.2 crore. I am the sole earning member of a family of four. My wife is a housewife and has two plots in her name. My son and daughter are both pursuing higher studies and have one property each in their names. I have a business in retail, with a turnover of Rs 42 crore last year. I live in my own house with no liabilities except for the loan outstanding. I have Rs 20 lakh in mutual fund investments. Now I have started investing Rs 5 lakh a month in funds. I have a term insurance of Rs 1 crore and health insurance of Rs 15 lakh for myself, wife and daughter. My goal is to marry off my son and daughter within three years and build a retirement corpus of Rs 10 crore. How should I go about it?
Sanjiv Bajaj, Joint Chaiman & MD-Bajaj Capital, replies: You should have mentioned when you would need the retirement corpus, and how much you need for the two wed dings. If we consider 10% CAGR over the next three years on your monthly investment, you will accumulate a corpus of Rs 2.10 crore. If you continue investing Rs 5 lakh a month, it will take 8-10 years to accumulate Rs 10 crore. Therefore, keep in creasing your monthly investment if possible. Assuming your risk appetite is moderate long term, you may divide your monthly investment in equity and hybrid oriented funds in 60:40 ratio. Parag Parikh Flexi Cap, UTI Flexi Cap, HDFC Growth Opportunity, Canara Robeco Emerging Equities, Kotak Emerging Equity and IDFC Sterling Value Fund in equity category and Aditya Birla Sun Life Balanced Advantage, DSP Dynamic Asset Al location, ICICI Prudential Asset Allocator FoF & Kotak Balanced Advantage Fund in hybrid category can be considered. Review your portfolio once a year.
