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SIP in Mutual Funds: Age 40 and want to create Rs 5,00,00,000, Rs 6,00,00,000 and Rs 7,00,00,000 retirement corpuses? Know how much monthly investment you may need
- Written by Bhawna Gupta
Published: Zee Business| Updated: Zee Business
An SIP or systematic investment plan is a way to invest in mutual funds. It enables investors to channelise a fixed amount of money into a mutual fund of choice at regular intervals, say monthly. The money is automatically deducted from your bank account and put in the mutual funds you have bought at the specified interval once you begin an SIP. You will be allotted mutual fund units based on its net asset value (NAV). The NAV is the price at which an investor can purchase or sell mutual fund units. It is updated daily after business hours. Rupee cost averaging allows you to profit from market volatility while SIP keeps your investment amount constant over a longer period.
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Age 40 and want to create Rs 5 crore fund?
1/10Age is no bar when it comes to investments. The trick lies in starting early. For someone looking to create a Rs 5 crore corpus at age 60 by starting at 40, it may need more time and effort to achieve this goal compared to someone starting 10 years earlier.
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How to create Rs 5,00,00,000 corpus?
2/10If a person invests Rs 54,360 monthly for 20 years, then they can achieve Rs 5 crore corpus at retirement assuming an annualised return of 12 per cent, show calculations.
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Calculations of Rs 5 crore amount
3/10Invested amount: Rs 1,30,46,400 Time: 20 years Estimated returns: Rs 69,57,046 Total value: Rs 5,00,03,446
4/10
How to create Rs 6 crore corpus?
4/10Similarly, if a person invests Rs 65,300 monthly for 20 years, then they can achieve Rs 6 crore corpus at retirement at the same rate.
5/10
Calculations of Rs 6 crore amount
5/10Invested amount: Rs 1,56,72,000 Time: 20 years Estimated returns: Rs 4,43,94,685 Total value: Rs 6,00,66,685
6/10
How to create Rs 6 crore corpus?
6/10A person investing Rs 65,300 monthly for 20 years can expect to reach Rs 6 crore at retirement at the 12 per cent rate.
7/10
Calculations of Rs 6 crore amount
7/10Invested amount: Rs 1,56,72,000 Time: 20 years Estimated returns: Rs 4,43,94,685 Total value: Rs 6,00,66,685
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How to create Rs 7 crore corpus?
8/10A person invests Rs 76,100 monthly for 20 years can expect to build a Rs 7 crore corpus at retirement at 12 per cent.
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Calculations of Rs 7 crore amount
9/10Invested amount: Rs 1,82,64,000 Time: 20 years Estimated returns: Rs 5,17,37,145 Total value: Rs 7,00,01,145
10/10
Average return
10/10The above calculations are based on an annualised return of 12 per cent.
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.
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