Need a fund of Rs 5 crore till retirement? Know how much SIP will have to be done every month

SIP Investment: Every person wants that after retirement he does not have to face shortage of money. But in view of the rising inflation in today’s time, merely saving is not enough. If you want to have a strong corpus of Rs 5 crore by retirement, then it is important to start investing on time. The good thing is that for this you do not need to invest a huge amount at once. This goal can also be achieved through regular SIP (Systematic Investment Plan).

Why is a big fund important for retirement?

After retirement from job, the salary received every month stops, but living expenses continue. It is important to have enough money to meet daily needs, health expenses, travel expenses and other responsibilities. Therefore, a large retirement fund provides financial security in the future.

How much SIP needs to be done to raise Rs 5 crore?

If your current age is 30 years and you want to retire at the age of 60, you have about 30 years to invest. If you get an average annual return of 12 percent on your investment, then you can create a corpus of around Rs 5 crore through a monthly SIP of around Rs 15,000 to Rs 20,000. If you start investing at an early age, this goal can be achieved even with a small amount. However, if you start late, you may have to invest more every month.

Easy ways to create a fund of Rs 5 crore

1. Start investing as soon as possible

Time is our greatest friend in the world of investing. The sooner you start investing, the more you will get the benefit of compounding and the faster your money will grow.

2. Increase SIP as income increases

When your salary increases, try to increase the amount of investment also. By increasing your SIP a little every year, you can get closer to your goal.

3. Continue investing for a long time

Withdrawal of investments made for retirement midway can make it difficult to achieve the goal. Therefore it is better to continue the investment continuously and for a long time.

4. Don’t be bothered by market fluctuations

It is normal for the stock market to rise and fall. Instead of stopping SIP when the market falls, continuing regular investments can give better results in the long run.

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5. Check your investments every year

Check your investments and financial goals at least once a year. If needed, your goal can be made stronger by increasing the SIP amount.