Mutual Fund Corner: Mutual Fund Corner: Which mutual funds to invest for my child's education and marriage?

Rs 20 lakh in 16 years for my child's education.

Rs 50 lakh in 20 years for my child's higher education.

Rs 1 crore in 26 years for my child's marriage.

Rs 4. 7 crore in the next 30 years for retirement.

A: First of all, it is great to see you are linking investing to financial goals. It’s a great step towards meeting them. We added all your goals to the kuvera.in goal planner and this is what you can do. All the SIP numbers include the impact of LTCG at the time of redemption.

Rs 20 lakh in 16 years for child education: Rs 4,000 SIP per month.

Rs 50 lakh in 20 years for child higher education: Rs 6,000 SIP per month.

Rs 1 crore in 26 years for child marriage: Rs 6,000 SIP per month.

Rs 7 crore in next 30 years for retirement: Rs 25,000 SIP per month.

A: If you plan for each separately you will need to invest Rs 41,000 per month. However, if you plan for all the goal together, in what is called unified goal planning, you can achieve the same outcome with a SIP of about Rs 35,000 per month.

Most of your goals are long term, the nearest being 16 years away. In terms of allocation, you should be looking at 85-90 percent equity and rest in short term debt or liquid schemes. Within equity, we would advise about 45 percent in large-cap where we recommend a Nifty Next 50 Index Fund, 28 percent in a focused equity fund and rest is split between a smart beta fund where we recommend Equal Weighted Nifty 50 Index Fund and an international fund.