MUTUAL FUND MAGIC: WANT TO START SIP AT 50? INVEST RS 40000 IN THESE 4 SCHEMES TO BUILD A SOLID RETIREMENT FUND

Mutual Fund Magic: People often think that investing should start at a young age, and also that once you have reached 50, it's too late to invest. However, experts believe this isn't the case. In India, people typically work until they are 60 or older, so even at age 50, you have about 10 years or more to start investing. If someone is actively working, they can build a good investment portfolio during this period.

However, understanding the risks involved when starting to invest at this age is crucial. In a special episode of ET Now Swadesh, expert Pankaj Mathpal advised new investors to start with balanced investment options like hybrid funds, multi-asset funds, or index funds, rather than jumping straight into high-risk options, so that both returns and risk are managed. So, let's understand how to build a long-term portfolio at age 50 and which funds to invest in.

Understanding risks before investing is crucial

Many new investors admit that they don't fully understand how to manage stock market risk. Therefore, investing directly in equities or stocks can sometimes prove risky. According to the expert, investors who are not familiar with market fluctuations should start with relatively low-risk options.

Are Hybrid funds a good option for beginners?

According to the expert, Hybrid funds are considered a good option for new investors. These funds invest in both equity and debt, maintaining a balance between risk and return. Although they are subject to market-related volatility, they are relatively less prevalent than equity funds. These funds help investors gradually develop market understanding and prepare them for risk.

Option for multi-asset and flexi cap funds

Multi-asset allocation funds can also be a good investment option. Multi-asset means you can gain exposure to equity assets as well as gold and silver. Gold is included, and reeds and silver are also included in the portfolio. This provides better diversification and can reduce risk somewhat, according to the expert.

In addition to it, flexi cap funds and Nifty 50 index funds are also considered good options for long-term investment. Flexi cap funds allow the fund manager to invest in large, mid-sized, and small cap companies, while Nifty 50 index funds offer the opportunity to invest in the country's top 50 companies. Among flexi cap funds, HDFC Flexi Cap is a good choice, says the expert, as is the Nifty 50 index fund, which is based on India's top 50 companies. Some of the funds investors can invest in include:

• ICICI Prudential Balanced Advantage Fund
• White Oak Multi Asset Allocation Fund
• HDFC Flexi Cap Fund
• SBI Nifty Index Fund

Mutual Fund Magic: Smart formula for Rs 40,000 SIP

Experts explained that people work until the age of 60, and therefore, 10 years is a suitable timeframe for SIPs. Furthermore, it's often seen that people are active, so there's nothing wrong with starting early. This allows them to build a good investment portfolio during this period.

Rs 15 crore target for a 45-year-old government employee

Experts advise a 45-year-old government employee, who wants to build a corpus of approximately Rs 15 crore over the next 18 years, to diversify his portfolio. He recommends investing in asset classes like gold and silver. Experts suggest using options like the Motilal Oswal Gold & Silver ETF Fund of Funds to gain exposure to gold and silver. This can provide a better balance to the portfolio in volatile markets and reduce risk to some extent.

• Motilal Oswal Gold & Silver ETF Fund

Focus on multi-asset funds with a target of Rs 2 crore

If an investor aims to build a corpus of approximately Rs 2 crore over the next 15 years, experts recommend a multi-asset allocation strategy. In this context, White Oak Capital Multi Asset Allocation Fund is a potential option, as it offers exposure to asset classes such as gold and debt, along with equities. This provides better diversification and balances risk in the portfolio.

• White Oak Capital Multi Asset Allocation Fund

Advise not to discontinue long-term savings plans

The expert also clarified that investors don't need to close their existing safe savings schemes to invest in mutual funds. Schemes like the Sukanya Samriddhi Yojana and PPF are particularly important for long-term safe savings. Therefore, instead of closing these schemes and investing in mutual funds, continuing both types of investments simultaneously may be a more balanced and safe strategy.

Patience is key in investing

• Experts say that when investing in mutual funds, one should have a minimum five-year horizon.
• During this time, the market can fluctuate several times, causing the value of the investment to fluctuate.
• In such a situation, investors should avoid panicking and stopping investments mid-investment or frequently changing their strategy.
• If the goal is clear and the investment is for the long term, maintaining patience may prove to be the most important strategy for achieving better returns.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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2026-03-06T12:42:36Z