Want to make Rs 1cr by retirement? Find out how

Radhika Gupta of Forefront Capital Management gives tips on how to make Rs 1 crore by the retirement.

For an investor who can invest Rs 15,000 per month, Gupta advises investing the amount into insurance, equities and gold. “Build up a portfolio that is 60% large cap equities, 30% midcap equities and 10% gold,” she said, adding that the amount can be staggered so as to put into different funds.

Gupta’s top picks are Franklin Templeton Blue Chip in the large cap space and ICICI Pru Discovery in the midcap space. “For gold, you can either use an ETF or a good gold fund,” she said,

Below is an edited transcript of her interview. Also watch the accompanying video.

Q: If an investor can invest Rs 15,000 per month and wants to make a crore of rupees at the end of retirement, how should he go about allocating money?

A: The good news is that you have your safe investments in place. You have some allocation to insurance. I would recommend increasing that a little bit. The existing investment will give you about Rs 20-30 lakh.

To meet the balance, you really need to have a more aggressive portfolio when you use this Rs 15000 a month. You need to build up a portfolio that is 60% large cap equities, 30% midcap equities and 10% gold. You can do this by staggering your Rs 15000 into two three funds every month.

We recommend Franklin Templeton Blue Chip in the large cap space, ICICI Pru Discovery in the midcap space and then for gold you can either use an ETF such as the Goldman Sachs ETF or the HDFC ETF or you can use a good gold fund like the Kotak Gold Fund.