I earn Rs.25, 000 a month and wish to save for my parents’ retirement. Should I invest in equity mutual funds or in a pension plan? - Rahul Chatterjee, Kolkata
It is comforting to see your desire to save early in your career for your parents’ retirement. Instead of putting money in a pension fund, it is advisable that you start an SIP in equity mutual funds. Although it is not very clear as to when your parents will actually need the retirement corpus, you should invest in large-cap funds, which predominantly invest in some of the biggest companies in India. These are not without risk, but you will need equity exposure because that is the only asset class which ensures overall growth and covers inflation. Franklin India Bluechip, ICICI Prudential Focused Bluechip and L&T Equity are some of the funds that you could consider to achieve your goal, which are all part of OLM Elite.
