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Business News/ Money / Personal Finance/  Mutual Fund SIP calculator: Want to become a crorepati before your retirement? Here is ideal SIP to amass 5 crore
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Mutual Fund SIP calculator: Want to become a crorepati before your retirement? Here is ideal SIP to amass ₹5 crore

Mutual fund SIP calculator: To amass a corpus of ₹5 crore by the age of 60, you'll need to make monthly investments based on your current age and risk tolerance

Mutual Fund SIP calculator: One should start early to reap the benefits of the magic of compounding.Premium
Mutual Fund SIP calculator: One should start early to reap the benefits of the magic of compounding.

Mutual fund SIP calculator: You don't become a crorepati in a day, it requires a systematic investment plan (SIP): years of hard labour before you taste the sweet ‘cash fruit’. Many people seek advice on how to build a retirement fund of 5 crore. According to personal finance experts, the key takeaway is to begin saving early in your career to benefit from favourable investment returns. Even a year's delay in retirement planning can greatly affect the corpus of your retirement fund. Hence, one should start early to reap the benefits of the magic of compounding.

Ideal SIP to amass 5 crore if you are in your 20s

“Turning the 5 crore dream into reality is absolutely practical through early and consistent SIPs if one lets compounding work its magic. Starting SIPs in your 20s to the tune of 8,000 per month into quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass 5 crore by 60," said Ashish Aggarwal, Director, Acube Ventures.

Ideal SIP to amass 5 crore if you are in your 30s

Even beginning in your 30s demands a higher monthly SIP of about 21,000 for the same impact. The key is elongating investment horizons beyond 25 years, carefully selecting funds, and stepping up contributions during earnings peak to capture compounding tailwinds fully. This underscores why making every rupee work hard from a young age achieves financial freedom and trounces inflation by a mighty margin, added Ashish Aggarwal.

Ideal SIP to amass 5 crore if you are 35 years old

According to the Upstox SIP calculator, a 35-year-old would need to invest 27,000 per month for the next 25 years to build a corpus of 5 crore by the age of 60, assuming a 12 per cent annual rate of return and monthly compounding.

As per the SIP calculator, the invested amount of eighty-one lakh will turn into five crore twelve lakh thirty-six thousand one hundred and forty-seven.

 

Ideal SIP to amass  <span class='webrupee'>₹</span>5 crore if you are 35 years old
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Ideal SIP to amass 5 crore if you are 35 years old (Upstox SIP calculator)

Ideal SIP to amass 5 crore if you are 40 years old

For example, suppose a 40-year-old wants to build a corpus of 5 crore by 60, how much should the person save? Let us understand this in depth.

According to the Upstox SIP calculator, a 40-year-old would need to invest 33000 per month for the next 20 years to build a corpus of 5 crore by the age of 60, assuming a 15 per cent annual rate of return and monthly compounding. As per the SIP calculator, the invested amount of seventy-nine lakh twenty thousand will turn into five crore twenty-six thousand five hundred and fourteen.

 

Ideal SIP to amass  <span class='webrupee'>₹</span>5 crore if you are 40 years old
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Ideal SIP to amass 5 crore if you are 40 years old (Upstox SIP calculator)

To improve your retirement planning approach, it's vital to diversify your investment portfolio and take into account factors like risk tolerance, investment horizon, and financial goals. Moreover, it's important to monitor your investment performance regularly and make necessary adjustments to stay aligned with your objectives.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 23 Feb 2024, 10:48 AM IST
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