SIP at THIS age can fetch you Rs 10 crore by 50 years: Here’s how much to invest every month

Everyone wants their retirement times to be content and financially stable. In India, the retirement age happens at the age of 60 years and people try to make a lot of savings for this age. 

 But why should you retire at the age of 60 only? If you think about retiring early, you should save sufficient money for the rest of your life. A lot of experts believe that if someone plans to retire early, he or she will have to start investing at an age of 25 years, even if it is a small amount.

A mutual fund SIP (systematic investment plan) is perfectly apt for those who are looking to invest a small amount every month and that too for the long term.

In order to create a savings of Rs 10 crore by the age of 50, he/she will have to consider a lot of steps at an early age of his life. 

SEBI registered tax and investment expert Jitendra Solanki told Mint, "To create Rs 10 core retirement corpus by age of 50 requires financial discipline and investment planning at the early phase of one's career is must. If a person wants to retire by 50 years of age, then he or she will have to start investing for a retirement fund by 25 years of age. At this age, one would be earning but the chances of having a huge lump sum amount for investment is little. So, mutual fund SIP would be the most suitable option for such investor as it helps developing ocean from an ice tip."

Meanwhile, Kartik Jhaveri, Direct — Wealth Management at Transcend Consultants said, "Only SIP might not be able to meet such an ambitious investment goal as mutual fund SIP yields 12-15 per cent per annum in long-term. One should make some pun in its investment like annual step-up by 10 per cent. A person's income is expected to grow annually and hence one should think of increasing one's investments too. So, a 10 per cent annual step-up in monthly SIP will help the investor reach ₹10 crore target."

According to the mutual fund SIP calculator, if a person starts SIP at 25 thinking that he/she will get a 12 percent annual return and Rs 10 crore investment goal for the age of 50, then every month’s investment will be around Rs 26,000.