Welcome to the Reader’s Query segment of FE Money. Last week, Suvranu Gupta from Mumbai shared with us that he has only three years left before retirement but he wishes to start SIP of Rs 50,000 in mutual fund schemes. Gupta wanted guidance on the funds in which he should invest, how much amount he should invest such funds and for what duration.
Amar Ranu, Head – Investment Products and Insights, Anand Rathi Shares and Stock Brokers, replies to Gupta’s query:
- Equity investments are for a minimum period of 5 years or more. So, given you have retirement due in the next 3 years, it may not be ideal to allocate the money to equity and utilize it after 3 years.
- However, if you want to utilize the current investments after 5 years, you may consider investing in equity mutual funds through SIPs.
- For 5 years or above duration, you may consider mixing the investments with diversified equity funds – large-cap funds, mid-cap funds and small-cap funds.
- Also, the most important thing to note here is to analyze your risk profile which would tell you how much money should be invested into equity and debt.
- Further, it is important to engage with a Mutual Fund Distributor/Advisor to help you in your investment journey.
FE Money recommends consulting a certified financial planner or SEBI-registered investment advisor for the right guidance before investing in any mutual fund scheme. More so because investors like Gupta, who have almost reached their retirement ages, need to be careful with where they plan to invest their money.
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