Do master planning of retirement in this way, you will get Rs 1.5 lakh every month!

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Today's youth are increasingly getting involved in retirement planning as soon as they start their careers. Be it investing in mutual funds or pension plans, they try to do everything that can help them achieve their retirement goals. However, at times, their financial goals are not met through their investment strategies. When it comes to creating a corpus of Rs 1.5 lakh every month, many youth get worried thinking that perhaps it will not be possible. Let us understand how this can be achieved.

How the fund will be built:

With the current monthly expenditure of Rs 1.5 lakh, it will grow to Rs 5.1 lakh in 25 years at 5% inflation, Anupam Guha, head of private wealth management at ICICI Securities, told The Economic Times. Considering a life expectancy of 85 years, you should create a portfolio that reduces your equity exposure by 20% as you age. For predictable income, you can invest your graduation and EPF amount in long-term funds like HDFC Long Duration Fund and Nippon India Target Investment.

To reduce risk and volatility in equities, consider shifting a significant portion of your direct equity holdings to hybrid funds. Balanced Advantage funds and multi-asset funds are good categories to earn annual returns of 8-12%, which are higher than debt but lower than equity.

Take special care of this:

ICICI Prudential Multi-Asset Fund and ICICI Prudential Balanced Advantage Fund are good options. You can keep your equity mutual fund going and reduce it later. Use the PF balance for your expenses in the first 18 months. Then, register for SWP from Long Term Loan Fund to pay 6% and manage any shortfall with BAF and MAF. Rebalance your portfolio once every 4-5 years. With returns of 9-10%, you should be able to sustain your retired life.