To create a corpus of Rs 10 crore by retirement, how much should you invest in SIP every month?
SIP Calculation: If you aspire to a luxurious and tension-free life after retirement, it’s essential to create a financial plan for it. Nowadays, 10 crore is not a luxury, but also a needed security measure. If you want to create a 10 crore fund under the age of 60, now is the best time to invest in a SIP. So, let’s know about the age, which what age the amount is invested in SIP.
Age 25: If your age is 25 and you start SIP, then your monthly investment amount is Rs 19,000 for the next 35 years. In this investment, you will easily create a 10 crore fund.
Age 30: If you invest at the age of 30, your amount is Rs 33,000. The SIP amount increases rapidly with age.
Age 35: By the age of 35, the investment horizon is only 25 years. Therefore, to achieve the target of ₹10 crore, you will need to make a monthly SIP of ₹59,000.
Age 40: At 40, the target becomes more challenging. You need to build a larger corpus in a shorter timeframe. Therefore, the SIP amount increases to ₹1.09 lakh per month.
Age 45: At 45, the time to earn extra returns becomes even shorter. Therefore, you need to make a monthly SIP of ₹2.11 lakh.
Age 50: If you haven’t started investing and you reach 50, you will need to invest ₹4.47 lakh per month to accumulate ₹10 crore. This proves that delaying investment can be very costly.
It should be noted that this entire calculation is based on an assumed annual return rate of 12%, which is typically achieved with long-term equity mutual funds. This SIP strategy varies depending on age; the earlier you start investing, the easier it will be to achieve your target.
