19.1 C
Delhi
Monday, October 25, 2021

Will your monthly expenses be 3 times till retirement? Start investing now

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

Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
Latest news
- Advertisement -
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here