Do you also want to be financially strong after retirement? If your dream is to save Rs 5 crore in 10 years, then this is an ambitious goal, for which you will need a precise and disciplined investment plan.
To achieve this goal, first of all, you have to choose the right investment option, which can not only give good returns but can also keep your retirement savings safe.
Systematic Investment Plan (SIP) is the best way.
If you plan to invest regularly, then a Systematic Investment Plan (SIP) can be the most effective way. Investing a fixed amount monthly in SIP not only maintains discipline in your investment, but you also benefit from compound interest.
Apart from this, SIP also benefits you when the market falls because the number of units you buy increases, which reduces your average investment cost.
Monthly Investment Plan
To achieve the retirement savings goal of Rs 5 crore in 10 years, you must create a proper SIP plan and invest monthly accordingly. However, this investment plan will depend on the returns you get. Therefore, it is important to consider the monthly SIP amount according to different annual returns.
Expected Annual Return on Monthly SIP Amount :
This ₹2.42 lakh at 10%, ₹2.16 lakh at 12%, ₹1.91 lakh at 14%.
Discipline and patience will bring success.
Although SIP seems to be an easy investment plan, discipline and patience are very important for it to be successful. Make sure to invest regularly every month and do not stop investing in between due to market fluctuations. Also, keep reviewing your investments from time to time and make changes if needed.
How to reach your retirement goal
Be market aware: Before investing, get a good understanding of equity mutual funds and the market. Make sure you understand where your money is going.
Have a long-term view: Investing in equity mutual funds is better for the long term. It is likely to give you better returns.
Maintain discipline: Invest regularly through SIP. This will give you the full benefit of compound interest and your investment will grow gradually.
Keep an emergency fund ready: While investing in SIP, also ensure that you have an emergency fund, so that in case of any financial crisis you do not have to break your SIP.
With such a planned and disciplined investment strategy, you can easily achieve your retirement savings goal. Whether your target is Rs 5 crore or more, create the right SIP plan and invest consistently in it so that you can enjoy a secure and financially independent future.