In current times, spending has risen to the point where it always feels like there is not enough money, regardless of the amount available. Planning for retirement has become essential. Hence, opting for mutual fund SIPs is a favorable choice for individuals who have just begun earning.
SIP is an acronym for Systematic Investment Plan. In this plan, you regularly contribute a set sum of money each month into a reputable mutual fund. It is up to you to select a quality mutual fund. After putting in a significant amount of time and money, you receive a substantial sum upon reaching retirement age.
Starting a SIP investment plan with Rs 1000 at the age of 20
Imagine you put Rs 1000 into SIP at the age of 20. And you receive a yearly return of 12%. Therefore, when you reach 60 years old, you are eligible to receive a sum of Rs 1.19 crore. By increasing your investment by 10% every year, you can potentially double your retirement savings to Rs 3.5 crore.
You have the option to invest Rs 3000 in SIP when you reach 30 years old
It is possible that some individuals could be 30 years old when they complete their education, start working, and begin taking care of household duties. It’s all good. By investing Rs 3000 in SIP at 30 years old with a 12% return, you can accumulate a total of Rs 1.05 crore by the time you reach 60. By increasing the investment by 10% every year, you will have a total of Rs 2.65 crore upon retirement.
You are able to invest Rs 4000 in SIP when you reach 40 years old
There is no time that is too late to start investing. By investing Rs 4000 in SIP at age 40 with a 12% annual return, you can accumulate a total of Rs 40 lakh by age 60. By increasing the investment by 10% each year, you have the potential to earn up to Rs 80 lakh.
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