Save As Per The Corpus You Need

Devesh Bansal, Mumbai I am 29. I started investing in mutual funds (MFs) two years ago. I invest Rs 2,000 each in three equity funds—multicap, focused equity and multi asset allocation—every month. I also have fixed deposits (FDs) worth Rs 10 lakh, besides Employees’ Provident Fund (EPF) and Public Provident Fund (PPF), but I aim to have around Rs 50 lakh in MFs. Is my contribution enough to create the portfolio I want over the next 25 years when I plan to retire, or should I increase it? Yes, this contribution of Rs 2,000 each in three good equity funds will easily help you accumulate more than Rs 50 lakh after 25 years as it will accumulate around Rs 1.12 crore assuming an annualised rate of 12 per cent. However, it may or may not be sufficient for your post-retirement expenses as you also need to calculate the right amount of retirement corpus that will be required...