Retirement : Do you how much amount you have to invest to get a retirement amount of 5 Crore?
Retirement planning is a process of setting up a goal for your life after you stop working and creating financial strategy to reach those goals. It includes saving money, investing wisely, and planning how to spend your income in retirement.
Plan your retirement smartly! Invest ₹23,000 monthly via SIP and build a ₹5 crore corpus in 20 years. Secure your retirement with mutual fund growth.
After retirement, a regular monthly income from your investment can help you to cover monthly expenses, medical expenses, maintain good lifestyle and it will avoid financial stress.
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How to reach 5 Crore retirement corpus
One of the smartest ways to earn 5 Cr retirement corpus by investing in mutual fund. Mutual fund is a mix of stocks, bonds, or other securities, this reduces the risk of losing money if one investment performs poorly. Fund manager handle the buying and selling and monitoring of the investments. And also, we have Systematic investment Plan (SIP) to invest our small amounts regularly instead of large one-time investment.
Let’s understand how a mutual fund and Systematic Investment Plan (SIP) can help you do this.
What is SIP (Systematic Investment Plan)?
SIP (Systematic Investment Plan) is a simple and smart way to invest in mutual funds. Instead of investing a large amount at once, SIP allows you to invest a fixed amount regularly
How much amount you will get at 23,000 Rs SIP investment?
With the right mutual fund and SIP plan, a 23,000 Rs on monthly investment with 13% annual return by investing in next 20 years over time and give you a return of 5.13 Crore, as we seen in this article. If you still haven’t read this article. You can go ahead and read that article first and come back to this article for better understanding.
Also Read: How much you will get after 20 Years, if you made 15,000 Rs as SIP
Important Note: These numbers are based on estimated returns. Actual returns can vary depending on market conditions and the fund’s performance.
How your 16,000 Rs Investment would grow to 5 Crore
If you are investing 23,000 rupees as a monthly SIP for 20 years starting from 1st January 2025 in one of the mutual funds gave 13% yearly return.
At 10th years in Dec 2034
Investment: Rs. 27,60,000
Interest: Rs. 29,10,000
Total Portfolio Size: Rs. 56,70,000
At 20th years in Dec 2044
Investment: Rs. 69,00,000
Interest: Rs. 4.53 Crore
Total Portfolio Size: Rs. 5.22 Crore
This investment of 69 Lakhs will become 5.22 crore in 20 years. This is the power of compounding in mutual fund investment. At 20th years you would receive a yearly interest income of 63 lakhs. On monthly basis you would receive around 5.26 lakhs rupees at 20th year. So, start early make the most of compounding. Mutual fund investment with good return can grow your significantly over time. This is the power of long-term investing and mutual fund growth. Let your money work for you.
READ MORE: SIP Return Calculator – How to Calculate Your SIP Returns with Step-Up SIP & Types
Benefits of Using SIP in Mutual Funds
- Begin with small amount of investment as 500 Rs per month.
- It will helps build huge portfolio in future.
- SIP reduces the risk on investment by entering into wrong time into the market.
- Your hard eared money will work for you and it will generate interest income for you.
- You buy more units when prices are low to average out the cost, if needed
The longer you stayed invested, the more your money grows due to compounding. You can start, stop, increase or decrease your SIP anytime, it’s completely flexible. Whether it’s retirement, a children’s education, or buying a house, SIP is a perfect for planning big financial life goals. Investing through Sip can give better than keeping money in a saving account also you can invest small amounts regularly and build a big corpus over time. Start your SIP early, stay consistent and let time and compounding do the rest. Your future self will thank you.
Disclaimer: This is not an investment or financial advice. Always consult a financial advisor before investing to choose the right fund and plan based on your needs and risk level.
READ MORE: 20 Factors to Consider Before Investing in Mutual Funds
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