New Delhi: In the face of inflation, initiating financial planning immediately upon securing employment is crucial. An important part of this planning involves establishing a retirement fund early on. Utilising a Mutual Fund Systematic Investment Plan (SIP) emerges as an excellent method for retirement savings. With SIP, you can systematically invest in a mutual fund scheme aligned with your investment goals and risk tolerance. This is achieved by setting up automatic monthly contributions from your savings bank account, making it a convenient and disciplined approach to long-term financial growth.
Mutual Fund retirement calculator
Suppose if you are currently 27 year-old and plan to retire at the age of 60. Your life expectancy is estimated to be 80 years. During retirement, you aim to have a monthly income of ₹1,00,000. You expect inflation to be 6%, while your investment returns before retirement are projected at 12% and post-retirement at 8%. Currently, your existing retirement fund amounts to ₹1,00,000.00.
Under this scenario, after retirement, you will require an annual income of ₹82.09 lakhs. To sustain this, you will need a total corpus of ₹13.25 crore. To accumulate this corpus, you will need to save approximately ₹26,262.23 monthly. These figures are crucial for planning your financial future and ensuring a comfortable retirement.
Past performance does not guarantee return
The concept of a fixed rate of return is not applicable here. Past performance does not guarantee future returns and may vary. It’s important to note that these calculators are meant for illustration and do not represent actual returns. Mutual funds do not offer a fixed rate of return, and accurately predicting future returns is impossible due to stock market conditions and investment performance fluctuations. Therefore, while these tools can assist in estimating potential outcomes based on assumptions, they should not be treated as guarantees of actual investment results.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
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Mutual Funds: Utilising a Mutual Fund Systematic Investment Plan (SIP) emerges as an excellent method for retirement savings. With SIP, you can systematically invest in a mutual fund scheme aligned with your investment goals and risk tolerance. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
