WOMEN’S DAY SPECIAL: RS 30 LAKH IN 10 YEARS? HARSHVARDHAN ROONGTA EXPLAINS SIP, NPS VS MUTUAL FUNDS & SMART RETIREMENT PLANNING

Women’s Day special: Ahead of International Women’s Day, several women investors shared their financial queries about SIP planning, lump-sum investments, retirement planning, and even starting a business. After analysing the queries, financial expert Harshvardhan Roongta suggested a few mutual fund schemes and financial strategies that women can adopt to achieve financial freedom.

Here are the key insights from the expert based on real investor scenarios.

SIP Planning: How to reach Rs 25-30 lakh in 10 years

• Investor: Prajakumari
• Current SIP: Rs 3,000 each in two funds
• Total Monthly Investment: Rs 6,000

Investor Portfolio

• HDFC Flexi Cap Fund
• ICICI Prudential Multi‑Asset Fund

Expert Recommendation

According to Roongta, assuming a 12 per cent annual return, a Rs 6,000 monthly SIP would grow to around Rs 13.75 lakh in 10 years, which is significantly lower than the target.

To reach the Rs 30 lakh goal, she should increase her monthly SIP to around Rs 13,000.

The existing funds are good for diversification. However, if she increases the investment amount, she can consider adding a mid-cap fund.

Suggested Addition

• Kotak Emerging Equity Fund

Suggested Allocation

• 70 per cent in existing funds
• 30 per cent in mid cap fund

Investing Rs 5 lakh lump sum during market volatility

• Investor: Leela (Rajkot)
• Investment: Rs 5 lakh
• Time Horizon: 10 years

Roongta believes that market volatility often creates wealth-building opportunities. If an investor understands short-term fluctuations, investing the entire amount as a lump sum can work.

Expert Recommended Funds

• ICICI Prudential Balanced Advantage Fund
• SBI Balanced Advantage Fund

Balanced Advantage Funds dynamically adjust equity and debt exposure depending on market valuations.

Leela can split the Rs 5 lakh investment between these two schemes.

Alternative Strategy: STP

If she is uncomfortable investing the full amount immediately, she can park the money in a liquid fund and gradually transfer it to equity funds through a Systematic Transfer Plan (STP).

NPS vs Mutual Funds for Retirement

Investor: Fatima

Fatima wanted to know whether she still needs the National Pension System (NPS) if she is already investing in mutual funds.

Roongta explains that retirement planning has two phases:

Accumulation Phase

Between the ages of 30 and 60, investors focus on building a retirement corpus.

Distribution Phase

After retirement, the corpus is used to generate a regular income.

With mutual funds, investors have flexibility. They can shift funds into options like Systematic Withdrawal Plans (SWP), fixed deposits, rental income or annuity products.

However, NPS is a more disciplined and structured retirement product. At retirement, investors can withdraw 60 per cent of the corpus, while 40 per cent must be used to buy an annuity that generates pension income.

Financial planning before starting business

Investor: Lovely (Punjab), an MBA student planning to launch a food truck business.

Roongta says entrepreneurial ambition is commendable, but financial preparation is essential.

Two Key Financial Steps

1. Personal Emergency Buffer

Before starting a business, one should have at least one year of living expenses saved.

For example, if monthly expenses are Rs 50,000, the emergency corpus should be around Rs 6 lakh.

2. Business Capital Planning

Initial expenses may include:

• Food truck purchase
• Licenses and permits
• Kitchen equipment
• Raw materials

Since early business revenue is often reinvested, maintaining personal financial stability is crucial before launching the venture.

(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