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Retirement Corpus

A portfolio with a high equity allocation will help you build a substantial corpus for your retirement…

I am 31 and plan to retire by 55. I started an SIP in HDFC Top 200 fund two years ago for my pension corpus. I plan to increase my monthly SIP installment every year. Is investing only in equity for the next 25 years advisable considering that this is specifically for my pension corpus?- Saravana Kumar

Fund Scheme  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
Reliance Equity Opportunities Multi Cap ***** 18.43 13.41
ICICI Prudential Dynamic Large & Mid Cap **** 10.13 12.53
HDFC Top 200 Large & Mid Cap ***** 13.96 14.75
Fidelity Equity Large & Mid Cap **** 13.21 13.88
BNP Paribas Bond Regular Debt: Income **** NA NA
Return as on August 24, 2011, Rating as on July, 2011

You have age on your side and should invest in a portfolio that has high equity allocation to build a corpus for your retirement. Historically in the long run equity as an asset class has always out-performed all other asset classes. When saving for a long-term goal such as retirement, it is advisable you have a high equity exposure to gain from the power of compounding for long-term wealth creation. We are suggesting you to invest in the Value Research growth portfolio which is made of five highly rated funds with a proven track record and performance history. Collectively this portfolio of five funds offers you 70 per cent equity exposure and you should have equal allocation to all the five funds. Make sure you invest regularly in this portfolio of funds and track the performance of the investment regularly.



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