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SIP calculator: Manish Mishra is a 35 year old salaried professional whose monthly income is in six digits. He and his wife want complete financial independence post-retirement and they believe 10 crore retirement corpus would be enough for them to meet this long-term investment goal.

Speaking on how Manish Mishra can accumulate 10 crore in next 25 years; Pankaj Mathpal, MD & CEO at Optima Money Managers said, "For retirement planning, one needs to keep the inflation in mind. My suggestion to investors is to keep 9-10 per cent annual rate of inflation in mind while investing for retirement corpus. And any tool they choose should have the ability to beat this rate of inflation. For a long-term period like 25 years, I would suggest an investor like Manish to go for equity mutual fund. It would beat this rate of inflation and help Manish to meet his investment goal." He said that monthly investment through Systematic Investment Plan (SIP) would make it easier for Manish to accumulate 10 crore investment goal in 25 years.

Source: Piggy SIP calculator
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Source: Piggy SIP calculator

15 X 15 X 15 rule of mutual funds

Advising Manish to remember 15 X 15 X 15 rule of mutual funds; Amit Gupta, MD at SAG Infotech said, "There is an impressive 15 X 15 X 15 rule of mutual funds where an investor can become a crorepati by investing 15,000 per month for 15 years expecting 15 per cent return from one's investment. However, in the case of Manish Mishra, who want to achieve 10 crore investment goal in 25 years, I would suggest the investor to maintain annual step up of 15 per cent in one's monthly SIP. In that case, for a period of 25 years, SIP return calculator or mutual fund calculator suggests that 11,000 monthly investment would be enough for Manish to accumulate 10 crore in 25 years."

Asked about the mutual fund SIP plans that can yield 15 per cent per annum in long-term, Vinit Khandare of MyFundBazaar listed out the following mutual fund SIP plans:

Small-cap Fund: SBI Small Cap Fund - Regular Growth;

Mid-cap Fund: Aditya Birla Sun Life Mid Fund - Plan - Growth Regular Plan; and

Large-cap Fund: HDFC Top 100 Fund - Regular Plan - Growth.

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