I want to retire in 17 years at age 50. Should I invest through SIP in only one mutual fund?

This is a common question I hear from investors who are planning early retirement. And the answer is not a simple yes or no. It depends on your goal, your risk appetite and your comfort with market fluctuations.

Let’s break it down.

You have one goal: retirement at 50, and you have a clear timeline of 17 years. With one long-term goal, it is possible to use one fund, but only in specific situations.

When one fund might be enough

If your risk appetite is moderate or low, and you do not want to deal with volatility or multiple schemes, one diversified fund can still work.

For example, a hybrid or multi-asset fund.

Why?

Because these categories already invest across equity, debt, gold and even silver in some cases.

So when one asset class struggles, another may perform well.

This reduces volatility and gives stable, predictable growth over long periods.

For someone who is new to mutual funds or prefers simplicity, a single multi-asset or hybrid fund can be a practical choice.

When you should not stick to one fund

If you are an aggressive investor and want to maximise long-term returns, one fund will restrict your potential.

In such cases, your portfolio may include:

•⁠  ⁠Small-cap

•⁠  ⁠Mid-cap

•⁠  ⁠Large-cap or flexi-cap

•⁠  ⁠A hybrid or debt component for stability

Here, having 3 to 5 funds makes more sense.

Not more than that, because over-diversification dilutes returns and makes tracking difficult.

The ideal number of funds

In most cases, a well-planned retirement portfolio should have between 1 and 5 funds depending on your risk appetite and investment behaviour.

But the purpose should be clear:

To create a retirement corpus that grows steadily and aligns with your comfort level during market ups and downs.

If you are planning early retirement and unsure how many funds you need, your ideal mix depends on your goals, risk level and income stability.

If you want help designing the right mutual fund plan for your target retirement age, feel free to reach out.