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News India Live, Digital Desk: Retirement planning in India is a very popular but very neglected subject. There is no person who does not accept the extreme importance of retirement planning, but most people except some people do not join the retirement planning (and implementation) quickly. Interestingly, if a person starts investing early with a clear goal, it becomes really easy to create an important fund.
Come equity with the help of mutual funds Take advantage of the best returns through the market. Let us also consider investing through SIP (Systematic Investment Plan), which has now become the most preferred investment instrument for millions of middle class and lower middle class Indians, who are looking for returns to beat inflation. We can determine how much you have to invest every month to make a few crores at the age of 60 years by using target -based SIP calculator.
How to earn 1 crore rupees for retirement?
Becoming a millionaire is still a dream for many people. Let us take the example of a youth who starts investing to make a retirement fund of Rs 1 crore every month at the age of 25. You will be surprised that you can reach a target of Rs 1 crore by investing just Rs 1,555 every month in equity oriented mutual fund scheme. The return here is 12%. This investor will invest Rs 6.53 lakh from his pocket.
How to make a retirement fund of Rs 5 crore?
Now suppose that the youth has set a target of making a fund of Rs 5 crore for retirement. Although this amount is very high, but to get this amount at the age of 60, there is no need to invest much every month. The calculator will tell you that the investor will reach Rs 5 crore in 35 years from a SIP of Rs 7,775. In this way, he will invest Rs 32.65 lakh from his pocket.
How to make a retirement fund of Rs 10 crore?
If the retirement corpus is a target of Rs 10 crore, then the youth need only Rs 15,550 to invest in mutual funds SIP. Although the investor will invest Rs 65.31 lakh from his pocket, an amount of about Rs 9.35 crore will be generated as a return. The moral of the story is that the sooner someone starts investing, the easier it is to cross the financial goal. The force of compounding works best in the long term and therefore, one should start traveling early. However, one must consult a qualified individual finance advisor to choose the most suitable mutual fund scheme for themselves.