Best SIPs to build a retirement corpus of Rs 3 crore

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I want to build a corpus of Rs 3 crore by the time I retire at 55. My risk profile is moderate. I have a stable income, and I am planning to stay invested till my retirement. I have the following SIPs in my portfolio:

SBI Bluechip Fund: Rs 1,000 per month
Nippon India Small cap Fund: Rs 5,000 per month


Also, I have a lumpsum amount of Rs 6 lakh to invest for around five to seven years. Please recommend schemes for lumpsum investment. I started my investments two years ago, and I am 31 years old. Could you recommend me the best SIPs? Also, comment about my current SIPs. What should be my SIP investment to achieve my target by the time I retire.
--Sushant Jain


We ask moderate equity investors to invest mostly in multi cap schemes. If they want to reduce risk further, we ask them to diversify and invest in large cap mutual funds.

SBI Bluechip Fund-Growth ★★★★
  • 11.13%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.11 YearsTime taken to double money
  • 8.51%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 2.2 YearsTime taken to double money
Currently, you are investing in a large cap mutual fund scheme and small cap mutual fund scheme. Small cap mutual fund schemes are not in line with your stated risk profile. They are meant for aggressive investors with a very high risk appetite and ability to withstand extreme volatility.


Assuming an annual return of 12%, you should invest around Rs 30,000 monthly to create a corpus of Rs 3 crore in 20 years.

Lastly, do not just choose a random number like Rs 1 crore or Rs 3 crore as a target retirement corpus. Work with real numbers, inflation, taxes to arrive at a realistic figure. For more, watch the slideshow below: Why Rs 1 crore will not ensure a rich retired life

Why Rs 1 crore will not ensure a rich retired life?
1/6

Rs 1 crore, Rs 2 crore, or Rs 5 crore will not guarantee a cushy retired life to you. Why? The basic idea behind creating a target corpus is to ensure that returns or interest from it would be enough to take care of your expenses after retirement. Have you done the math to find out whether the big round figure would do that?

Rs 1 crore, Rs 2 crore, or Rs 5 crore will not guarantee a cushy retired life to you. Why? The basic idea behind creating a target corpus is to ensure that returns or interest from it would be enough..
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Sure, Rs 1 crore is a large sum today. But do you believe it will have the same value after 20 years? Do you know how inflation impacts the value of money over a long period? For example, the value of a house is Rs 1 crore today. Do you know how much you need to shell out to buy it after 20 years? Hold your breath: you need Rs 3.21 crore to buy the same house after 20 years, accounting for an annual inflation of 6 per cent. In other words, Rs 1 crore would be worth 1/3rd of its value (around Rs 31 lakh) today after 20 years.

Sure, Rs 1 crore is a large sum today. But do you believe it will have the same value after 20 years? Do you know how inflation impacts the value of money over a long period? For example, the value o..
Read More

Everyone knows about inflation, but many people fail to include it in their financial planning. Be it retirement or child's higher education, inflation would add a few zeros to your target corpus over a long period. Failing to account for it would be disastrous.

Everyone knows about inflation, but many people fail to include it in their financial planning. Be it retirement or child's higher education, inflation would add a few zeros to your target corpus ove..
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The best way to tame the villain is to work with actual numbers. Always find out the current cost of your financial goal. Once you have it, inflate it with a realistic inflation number for every year. This will help you to arrive at a realistic corpus. You can use the FV formula in Mircosoft Excel or compounding interest formula to do this calculation.

The best way to tame the villain is to work with actual numbers. Always find out the current cost of your financial goal. Once you have it, inflate it with a realistic inflation number for every year..
Read More

Once you know the target corpus, you need to identify an ideal investment vehicle to achieve the goal. Sure, since it is a long-term goal, you should naturally opt for equity mutual fund schemes. However, make sure you chose an equity mutual fund category that is in line with your risk profile. You may use the PMT formula in Microsoft Excel to find how to much you need to invest every month to create your target corpus.

Once you know the target corpus, you need to identify an ideal investment vehicle to achieve the goal. Sure, since it is a long-term goal, you should naturally opt for equity mutual fund schemes. How..
Read More

You can check our special page ‘Retire rich with mutual funds’ to know everything about planning your retirement with mutual funds.

You can check our special page ‘Retire rich with mutual funds’ to know everything about planning your retirement with mutual funds.

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