How to invest Rs 50,000 every month for retirement?

I am 45 years old and plan to invest Rs 50,000 every month for the next 10 years for my retirement. How should I go about it? - Ashish Athale

If you want to save for retirement (or for any investment goal) you have to be realistic. Therefore,

• Firstly, you will need to identify how much money you need to retire.
• Secondly, you need to see how much money you would end up actually accumulating for meeting your needs during retirement.

The two amounts need to be in sync to enjoy a worry-free retirement life.

The action plan
Choose two-three good flexi-cap funds and invest your money through monthly SIPs.

Since there are 10 more years to go in your career, this would give adequate time for your investment corpus to grow.

You can also invest in aggressive hybrid funds if you have not had any experience investing in equity funds. They can be a suitable choice as they are less volatile than pure equity funds.

You can click here to exactly know which mutual funds would be best for you.

A mix of fixed income and equity in your retirement years
Thereafter, being retired doesn't mean you need to move your entire corpus to fixed income and try to be safe with it. Instead, an ideal plan for you would be to maintain a careful allocation between fixed income and equity so that your corpus grows in your retirement years as well, without any undue risk. This would ensure that it keeps up with inflation and compensates for any drop in interest rates that might affect your fixed income allocation in your retirement life.

Suggested read: The ultimate portfolio for a retiree