I am 30 and want to invest in mutual funds for my retirement. How should I go about selecting funds?
Investing in mutual funds for retirement
I am 30 and want to invest in mutual funds for my retirement. How should I go about selecting funds?
Amit Rajpal, Noida
You are investing for a goal which is at least 15-20 years from now, which means you can invest in equities as an asset class. Have a dedicated portfolio that is maintained for your retirement with 2-3 funds in it for investments and start an SIP in this portfolio, which should be reviewed once a year at best.
Invest in diversified equity funds, across market capitalisation and sectors to build this portfolio. Invest in funds like Birla Sun Life Frontline Equity, Invesco India Growth and Mirae Asset India Opportunities to start with, all of them have a long history of proven performance over different market cycles. And, as you approach your retirement, start transferring monies from these funds by booking profits and parking it into less volatile asset class like debt and even bank savings if need be.