SIP Plan: A person will have to invest only Rs 8416 every month from the age of 20 to get Rs 10 crore when he retires at the age of 60.
Mutual Fund SIP : If you invest, you can get good returns by investing in Mutual Fund SIP . Because to get maximum benefit from Mutual Fund SIP one needs to stick with it for a long period of time. Starting early can do wonders for your corpus, especially when saving for retirement. But before you do this calculation understand how saving for retirement can benefit you.
What is Systematic Investment Plan
Systematic Investment Plan (SIP) is an investment platform offered to investors by many mutual funds that enables them to make regular, small or large investments. Typically, investments are made on a weekly, monthly or quarterly basis. SIP works by making fixed investments at predetermined intervals. With this, an investor can invest without any movement and without giving time to the market.
Understand the math of SIP like this
For example, assuming 12% returns, a person would have to invest only Rs 8416 every month from the age of 20 to get Rs 10 crore when he retires at the age of 60. Due to which 10 crore rupees will be made on maturity. For example, if you start investing at the age of 25, you would need a SIP of Rs 15,396 per month. Which will become Rs 10 crore on retirement.
When you retire, you will have several options for using the retirement corpus to generate a monthly income flow for your needs. You can either deposit money in a bank FD or buy annuity plans from life insurance companies, such as LIC New Jeevan Shanti Plan.
