Monthly SIP Investment for Retirement: A Guide to Achieving Your Goals

The amount you need to invest monthly in a mutual fund scheme via Systematic Investment Plan (SIP) depends on your wealth accumulation goals and the duration of your investment horizon. Let’s explore how to structure a SIP to achieve a significant retirement corpus over a 20-year period.

Standard Monthly SIP Approach

Imagine you are planning to invest over a long period of 20 years with the goal of accumulating a retirement corpus of around Rs 1 crore. Under a standard Regular SIP approach, you would need to invest approximately Rs 11,000 per month in equity mutual funds. This investment can be expected to yield a rate of return of 12% per annum.

Let's break down the investment details:

Investment Structure:

Monthly Investment: Rs 11,000 Duration: 20 Years Expected Rate of Return: 12% Total Corpus: Rs 10,698,380 (calculated returns)

Note: The return mentioned is a calculated return and not the actual return. Actual returns may vary with market volatility.

Stepped-Up Monthly SIP Approach

Alternatively, you might consider a stepped-up monthly SIP strategy. Initially, you would need to invest a lower monthly amount, which increases annually. For instance, you could start with a monthly SIP of Rs 5,500 and increase it by 10% each year. This approach requires a bit more discipline but can lead to a larger retirement corpus.

Under this approach, your corpus after 20 years would be approximately Rs 10,698,380, with an expected rate of return of 12%. The investment details are as follows:

Investment Structure:

Initial Monthly Investment: Rs 5,500 Investment Increases by: 10% annually Total Corpus: Rs 10,698,380 (calculated returns)

Note: The return mentioned is a calculated return and not the actual return. Actual returns may vary with market volatility.

Conclusion and Advice

While these calculations can provide a rough estimate, the actual returns may vary depending on market conditions. To ensure that you are investing wisely, we recommend consulting a financial adviser. You can also reach out to us for more detailed information on mutual fund investments. Please drop your contact number in the comment box, and we will connect with you shortly.

About the Author: Ankit’s Mutual Fund Gyan

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