Do Sip at Right Time
The way inflation is increasing, in the coming days, the expenditure of the house is also to increase. As long as there is a job and a good salary, there is not much worry about it. But if you have not done planning for post-retirement, then it will be difficult to keep expenses. If the inflation rate is to grow at the rate of 6 percent now, then after 25 years, the current expenditure will more than double. That is, if you spend 50 thousand now, it will be 1.3 lakh after 25 years. Have you also wondered where the money will come from after retirement? Otherwise, this report can be of use to you.
Planning chart
Current age: 35 years
Retirement age: 60 years
Investment time: 25 years
Life expectancy: 85 years
How long to retire after retirement: 25 years
Current expenses: 50 thousand rupees a month
Inflation: 6% average estimate
Monthly expenses after 25 years: 1.3 lakhs (for 25 years)
How much fund is needed: around 3.5 crores
SIP calculation
Case: 1
Investment time: 25 years
Estimated Return in Long Term: 12%
Monthly SIP: 18 thousand rupees
Value after 25 years: 3.40 crores
Case: 2
Investment time: 25 years
Estimated Return in Long Term: 10%
Monthly SIP: 25 thousand rupees
Value after 25 years: 3.34 crores
(Note: If the estimated return is 12 percent, then for 25 years, you will have to do a SIP of 18 thousand rupees every month from now. But if you take only 10 percent of the return estimate, then this amount will be 25 thousand monthly.)
SIP Returns: Examples of Best Mutual Funds
Nippon India Growth Fund
20-year return: 20 percent annually
Value of 10 thousand monthly SIPs in 20 years: 2.46 crores
SBI Magnum Global Fund
20-year return: 19.41 percent annually
Value of 10 thousand monthly SIPs in 20 years: 2.27 crores
Franklin India Prima Fund
20 years of return: 19.14 percent annually
Value of 10 thousand monthly SIPs in 20 years: 2.19 crores
ICICI Pru FMCG Fund
20-year return: 18.39 percent annually
Value of 10 thousand monthly SIPs in 20 years: 2 crores
DSP Equity
20 year return: 17.88 percent annually
Value of 10 thousand monthly SIPs in 20 years: 1.88 crores
(Based on discussions with AK Nigam, director of BPN Fincap Consultants Private Limited)
Disclaimer: We have given here the information of the fund which gives the best SIP returns, based on their performance. Nivea is not being advised in those funds. Get advice from experts before investing.
Source: www.financialexpress.com