-Alpesh More
First, do not take round figures like Rs 5 crore for your retirement. Always work with real numbers. For example, calculate your living expenses and provide for annual inflation. That will tell you roughly how much money you need to take care of your annual living expense. If you multiply it with your life expectancy, it will give you a rough idea about the corpus.
For example, you need Rs 6 lakh to take care of your annual living expenses now. Assuming an annual inflation of 6%, you will need around Rs 30.67 after 28 years (or when you are 60). If we assume that you would live till 85 years, you would need around a corpus of around Rs 7.66 crore (Rs 30.67 x 25). Note, this is a rough calculation that does not take into account how you would make your investments after retirement and impact of inflation.
Assuming an annual return of 12% on your investments, you need to invest around Rs 28,000 every month to create a corpus of R 7.66 crore at the end of 28 years.
You should always choose mutual funds based on your goal, horizon, and risk profile. Since you have a long-term goal, you may invest in equity mutual funds. However, the mutual fund category would depend on your risk profile. For example, if you are a conservative equity investor, you should invest in large cap mutual funds. If you have a moderate risk profile, you may invest in flexi cap funds.
If you do not know much about investing in mutual funds, seek the help of a mutual fund advisor near you. Gain some knowledge and experience before taking care of your investments on your own.
