SIP Investment: What will happen on retirement? Don’t worry about this. Start financial planning from the first salary. If you start a SIP of just ₹2000 for retirement life, you will make yourself a millionaire. Know how?
Just worrying about retirement will not help, you have to do financial planning in advance. If you do financial planning in time and start implementing it, then you will be able to accumulate a fund of more than one crore as retirement fund without any load. All you have to do is that as soon as you get a job, you have to start a SIP of ₹2000 first. This is such a small amount that even a person earning a simple salary can start it. If you start a SIP even at the age of 25, then you will accumulate a fund of more than 1 crore at the age of retirement.
Understand through calculation
If you start a SIP of Rs 2000 at the age of 25 and continue this investment till the age of 60, then you will have to invest for a total of 35 years. In the long term, the average return of SIP is considered to be 12 percent. Sometimes it is even more than this. But here we will calculate on the average return only. If you invest Rs 2000 every month through SIP in mutual funds for 35 years continuously, then you will invest a total of Rs 8,40,000. But the compounding interest at the rate of 12 percent in 35 years will be Rs 1,21,50,538. In this way, in the 60th year, you will get a total of Rs 1,29,90,538 by combining the invested amount and the interest amount. If you get a return of 14%, you will get Rs 2,24,64,972 at the age of 60.
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Keep this in mind
Investment in mutual funds is done through SIP, which is market linked, hence it is subject to risk. There is no guaranteed return in the market. In such a situation, returns cannot be guaranteed even in SIP mutual funds. But most financial experts believe that in the long run, the average return of SIP is up to 12%. Sometimes it has been seen to get 15 and 20% as well. Such a return cannot be obtained through any other scheme. This is the reason that despite the market risk, people’s interest in SIP has increased a lot in the last few years.
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