A good retirement fund can be added by investing in mutual funds through SIP. This scheme is beneficial for long term. It gives better interest.
investing in mutual funds
Almost everyone dreams of keeping crores of rupees in the bank account, but it is not easy for the employed people to add such a huge amount. Because there is not much savings due to limited income and expenses. But by investing in mutual funds through SIP, your dream can be fulfilled. By investing a fixed amount till the age of 50, you can make a corpus of about 10 crores.
Under Mutual Fund SIP (Systematic Investment Plan) you can deposit a large amount with small monthly investments. This scheme is beneficial for long term. To add such a huge amount, the investor should plan the investment at an early stage of his career. If a person wants to retire by the age of 50, then he should start investing from the age of 25.
Get 12-15 percent interest
SIP gives returns of up to 12-15 percent, so investing money in it is beneficial in the long term. An individual’s income increases annually, so one must think of increasing their investments. Investing 10 percent of the amount every month in SIP will help in reaching the target of Rs 10 crore. With annual increase in monthly SIP, the investor will get more compound return on investment.
It is beneficial to keep the step up rate high
According to the mutual fund SIP calculator, if a person adds Rs 26,000 every month at the age of 25 and gets 12 per cent annual return on that. So by the age of 50, a fund of Rs 10 crore can be collected. According to experts, if the investor keeps the annual step-up rate high, then the monthly investment may be less. Along with this, the fund will also be added easily. Step-up is the process in which SIP investors get the flexibility to automate their contributions.
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