How much should I invest to create a retirement corpus of Rs 5 crore?

I am looking to build a corpus for my retirement, and my kids’ education and marriage. My children are 12 and 15 years old and the current cost of their education fund is Rs 75 lakh each. The marriage expense is Rs 40 lakh (current expense). I am aiming for a retirement corpus of Rs 5 crore. How much should I invest to achieve these goals? I am 38 years old.

Here is my current portfolio:

SBI Mutual Fund: Bluechip Fund, Small Cap Fund, and Focused Equity Fund
ABSL Mutual Fund: ELSS, Frontline Equity, and Banking & Finance Fund
Reliance Mutual Fund: Smallcap Fund
Kotak Mutual Fund: Select Focus Fund
ICICI Mutual Fund: Balanced Advantage Fund

-- Pradeep John Pappachen

You have not mentioned when you need the higher education fund for your kids. If it is after graduation (that is, when they are 20 years old), you don’t have much time. Creating a corpus of Rs 1 core (assuming an annual inflation of six per cent) in five years calls for huge monthly investments. For example, assuming an annual return of 12 per cent, you need to invest Rs 1.21 lakh every month to create Rs 1 crore in five years. You need to invest Rs 74,000 every month to create Rs 1.20 core in eight years. If you are retiring at 60, you need to invest around Rs 38,500 every month to create a corpus of Rs 5 crore in 22 years.

You have not shared your risk profile with us. So, it is not possible to comment on your mutual fund portfolio. You must ensure that your schemes are in line with your risk profile. For example, if you are aggressive investor, you should invest mostly in midcap and smallcap schemes. Similarly, if you have a moderate risk profile, you should invest mostly in multicap schemes.