Starting at 40, you want to create Rs 2 crore corpus by 60? Know how much monthly SIP investment you need to achieve that
SIP in Mutual Funds: It is a disciplined way to invest in mutual funds. You can start an SIP of any amount at any age and set a financial goal.
Retirement planning is required for the time when you stop working. To achieve a desired financial goal; you need to identify your income sources, invest in some financial schemes, and have some risk appetite.
Images: Pixabay, Pexels, Freepik
Start investing as soon as possible
You can start investing at any age of your working life but it is always better to begin early.
Have you already started investing?
So, have you already started investing? If not, don't worry! You can still achieve your financial goal till retirement if you plan your investment according to your financial aim.
Mutual fund SIP
In this article, we will discuss mutual fund SIP (systematic investment plan) schemes where you can earn good returns and achieve your financial goals. But before that, let's know what is SIP and its benefits.
What is SIP?
It is a disciplined way to invest in mutual funds. You can start an SIP of any amount at any age and set a financial goal.
Monthly or weekly?
SIP can be weekly, monthly, half-yearly or annually.
Benefits of SIP
It makes you a disciplined investor. Investors can also benefits from rupee-cost averaging.
Build wealth
It helps investors to build wealth over time through average costing and compounding.
What is compounding?
The interest received on the principal amount is reinvested, potentially yielding bigger returns.
SIP investment to achieve Rs 2 crore corpus in 15 years
If you start investing Rs 40,000 every month from 45 years of age till 60 then you can achieve your goal. You can accumulate Rs 2.01 crore in just 15 years if you get an expected return of 12 per cent per annum.
Calculations of accumulating Rs 2 crore
Total investment: Rs 72,00,000
Expected returns: 1,29,83,040
Total amount on maturity: 2,01,83,040
SIP investment to achieve Rs 2 crore corpus in 20 years
If you start investing Rs 20,500 every month from 40 years of age till 60 then you can achieve your goal. You can accumulate Rs 2.04 crore in just 20 years if you get an expected return of 12 per cent per annum.
Calculations of accumulating Rs 2 crore in 20 years
Total investment: Rs 49,20,000
Expected returns: 1,55,62,532
Total amount on maturity: 2,04,82,532
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.