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Building A Corpus

To invest for your retirement corpus, start with balanced funds & gradually move towards large-cap ones...

I am 41 year old single working woman with no financial liability. I am working towards building my retirement corpus of Rs 30 to Rs 40 lakh and plan to retire when I turn 55. I would like to invest Rs 15,000 a month regularly over the next ten years. Should I invest through a bank or directly with a fund house?- Amrit Kaur

It is promising to note your inclination to invest for an early retirement. If you invest Rs 15,000 every month in a portfolio earning an annualised 12 per cent return for 14 years, you can accumulate Rs 65.4 lakh. If the same portfolio earns at 15 per cent returns, you will be able to accumulate Rs 85.78 lakh.

As you are new to mutual fund investing, we suggest you start by investing balanced funds such as HDFC Balanced or HDFC Prudence. Invest in these funds through an SIP for six months to experience how mutual fund SIP investments work and the way your investments perform. You can then form a portfolio that is made of large-cap funds such as DSPBR Top 100 and Large- and mid-cap fund such as HDFC Top 200 or Fidelity India Growth
. You can start investing directly with the asset management company or through third party portals that have the platform to buy and sell mutual funds across fund houses. Make sure you invest regularly and track the performance of your investments at least once a year to evaluate its progress towards your financial goal.

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