Readers' Corner: Financial planning

Savings last longer if you do two things: save more by spending less while you work, and invest smartly so you can earn a better return

I want to invest Rs 20,000 a month via systematic investment plans (SIP) for 10-15 years. I am 32. How should I allocate this amount and in how many funds?

Consider just two or three funds. Ideally you should get a large-cap fund, a mid-cap fund, and perhaps a sector fund. Readers who want to invest a larger sum may consider two funds of each kind. Having more funds does not provide additional diversification benefit. Your minimum timeframe should be 10-15 years, but I urge you to continue for as long as you can. SIP is a very good habit. With