MF queries answered by Harshvardhan Roongta, CFP, Roongta Securities

Could you suggest me what should be the size of SIP amount to build a corpus of Rs 10,00,000 in the next two years. Also suggest few mutual fund schemes through which I can build the desired corpus with maximum tax benefit.
Rajdeep
Given that you wish to invest for a period of two years, you should look at investing in debt schemes or bank recurring deposit. In either case, the gains will be taxed at marginal rate (i.e, your tax slab based upon your total income for the financial year). If we assume a returns of 7-8% pre-tax, then you would need to invest about Rs 40,000 per month to accumulate the desired corpus of Rs 10 lakh. I suggest that you invest in dynamic bond funds so that there remains a door open for exceptional gains incase the interest rates head southwards in the next year or two. You can invest in ICICI Prudential Long Term Fund andor Birla Sunlife Dynamic Bond Fund.

I would like to start investment in mutual funds for funding my son's college education abroad. My son is 7.5 years old and I have already take children education policy (LIC premium Rs 48,040 per annum) in order to partially fund his education. Pls guide some good funds.
Vidhi
You have 12-15 years before you will need the money for your son's college education. Your investments should aim to maximise the returns via long term group assets such as equities. I am not aware of the amount you wish to invest or the corpus you aim to accumulate. Nevertheless, spilt the amount you wish to invest as 50% Large Cap Funds, 30% Mid Cap/Multi Cap funds and 20% in balanced funds. Schemes: Franklin India Bluechip Fund (Large Cap), ICICI Value Discovery Fund (Multi Cap) and Tata Balanced Fund. Review the performances once in 2 years.


I am 61 years old and retired in 2015. I wish to start a SWP and invest Rs 10 lakh lump sum for 5-6 years. Please suggest some equity-based mutual funds.
Subhash Sawant
If I understand correctly, you wish to invest a lump sum of Rs 10 lakh in an equity fund and set up a SWP (systematic withdrawal plan) to withdraw regularly to meet your expenses for a period of 5-6 years. Considering that I donot have full information about your finances at present, I am not sure if this strategy would be suitable for you given that you are 61 years in age with a time period of 5-6 years. This money is a part of your nest egg for retirement needs therefore I recommend that you invest it with extreme care and complete understanding. I suggest that you meet a financial planner in person and seek detailed advice for this investment.