If you want 10 crores at the age of 60, how much monthly SIP will you have to do, calculate according to your age

Early Investing For Retirement Goals :If we delay our investment savings due to negligence, then achieving financial targets becomes that much more challenging. That is why financial advisors advise that one should start investing as early as possible. Starting investing at a young age means more time to achieve financial targets. At the same time, investing in the long term also gives you the full benefit of compounding (Magic of Compounding). If you want to understand the importance of early investment, then you can easily understand it by linking it to retirement planning.

8-4-3 rule of compounding: Your wealth will increase by 50 lakhs every year, with this formula your money will double day and quadruple night

If you are 25 years old and you are asked how much fund you need at the time of retirement. 35 years from now and considering inflation, a fund of Rs 10 crore at the time of retirement can make your non-working life easy. To get this fund of Rs 10 crore, if you plan properly immediately (Start your SIP early) then it will be easy. But as you delay, this fund will go further away.

Difficult to achieve target if delayed

If we delay investing, it is not easy to achieve the target. We have set a target that we need a fund of Rs 10 crore on retirement. If you start SIP at the age of 25, then it will require Rs 15,000 monthly SIP, if the annualized return is 12%. But if you start it at the age of 30, then Rs 28,000 monthly will be needed, at the age of 35, Rs 52,000 monthly and if you start it at the age of 40, Rs 1,00,000 monthly will be needed. That means you will have to invest about 7 times more than at the age of 25.

10 mutual fund schemes giving 65-77% return in 1 year, competing with the stock market in giving profits

Case 1: Investing at the age of 25

Monthly SIP: Rs 15,000
Annual return: 12%
Duration: 35 years
Value of SIP after 35 years: Rs 9,74,29,036 (about Rs 10 crore)

Case 2: Investing at the age of 30

Monthly SIP: Rs 28,000
Annual return: 12%
Duration : 30 years
Value of SIP after 35 years: Rs 9,88,37,586 (around Rs 10 crore)

Case 3: Investing at the age of 35

Monthly SIP: Rs 52,000
Annual return: 12%
Duration : 25 years
Value of SIP after 35 years: Rs 9,86,77,025 (around Rs 10 crore)

Case 3: Investing at the age of 40

Monthly SIP: Rs 52,000
Annual return: 12%
Duration : 20 years
Value of SIP after 35 years: Rs 9,99,14,792 (around Rs 10 crore)

Tata Motors: Tata Group’s giant stock may fall, brokerage also alerted, it is in your portfolio

what was the result

Here it is clear in the calculation that if you start investing from the age of 25 (Start SIP)If you do this, you will need a monthly SIP of Rs 15,000 to earn Rs 10 crore at the age of 60. If you start at the age of 30, you will need a monthly SIP of Rs 28,000, if you start at the age of 35, you will need a monthly SIP of Rs 52,000 and if you start at the age of 40, you will need a monthly SIP of Rs 1 lakh.

These 5 large cap schemes gave Rs 1 crore to those who did SIP in 15 years, total investment was only Rs 28 lakh

The shocking results

One more thing is clear here that if you can start SIP at the age of 20, then your money will grow 100 times at the age of 60. On the other hand, if you delay and start investing at the age of 30, then your money will grow 30 times at the age of 60, whereas if you start investing at the age of 40, your money will grow only 10 times.

Source: FundsIndia Research