SIP calculator: How to create a corpus of ₹10 crore in 10 years1 min read . Updated: 12 Oct 2021, 10:55 PM IST
- In the long-term, equity-linked mutual funds can provide 10 to 15% returns based on the category of funds that you choose.
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35-year-old techie Saina wants retire in next ten years to focus on her painting career. But, before that she wants to save ₹10 crore to secure her future.
Paritosh Sharma, financial planner and founder, Psquare LLP, said, since, the time horizon is long here, Saina should invest in equity-linked products like mutual funds.
In the long-term, equity-linked mutual funds can provide 10 to 15% returns based on the category of funds that you choose.
In case, the rate of return is 10%, the investor is required to invest ₹5 lakh per month. This way, for an investment amount of ₹6 crore, she would be able to create a corpus of ₹10.32 crore.
Meanwhile, for 15% average returns, Saina needs to invest Rs3.6 lakh every month. For a total investment amount of Rs4.3 crore, she would be able to create a corpus of ₹10.04 crore.
Sharma said, for such investments, investors can pick large cap funds, flexi cap funds or index fund. She can also choose to invest in a combination of these three funds.
The financial advisor also noted that with increasing income, Siana can invest in step up SIPs. Through this mode, she should increase her SIP amount by 10% every year. This is a much faster way to grow your money.
By doing this, Saina can create a corpus of ₹10.5 crore in 10 years by investing ₹2.3 lakh with an average rate of return of 15%.
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