Who doesn’t want to become a Crorepati? Not everyone is successful in achieving it, but if the investment option is right and regular savings are made, then achieving this target is not a big deal. A special formula of investment can help in this. Here we are telling how a big fund of Rs 15 crore can be accumulated through regular investment in 30 years, so that life after retirement can be spent in fun.
These 3 things are important to achieve the target
To achieve the goal of collecting a fund of more than Rs 15 crore in 30 years for retirement, smart financial schemes, regular savings and the power of compounding are necessary. So if you are 30 years old and want to have this much fund in your account on retirement, then you can apply this formula, which is related to SIP in mutual funds. If seen, Systematic Investment Planning i.e. SIP has achieved a return of up to 15-18 percent in the long term, but here we take an average return of 12 percent.
Power of compounding in SIP
Before investing in the stock market or mutual funds, it is important to understand that these markets are subject to risks and returns may fluctuate, that is, your actual return may be more or less. However, if we look at the history of SIP, it has given investors a return of 10-15 percent or more. In the long term, it has also been up to 18-20 percent. Systematic Investment Plan (SIP) is a long term investment process and the most important thing in this is that along with strong returns on investment, maintaining it for a long period also gives the benefit of compounding and a huge fund is collected. Through which you can join the list of millionaires.
Formula to raise Rs 15 crore in 30 years
Now let us tell you how you can collect more than Rs 15 crore in 30 years even with the average 12 percent return in SIP. So to achieve this target, you will have to invest Rs 50,000 every month. If we see through the SIP calculator, if this much amount is invested every month in mutual fund SIP for 30 years continuously, then the total deposit amount in this period will be Rs 1,80,00,000. On the basis of 12 percent return, the return you get on this will be Rs 15,84,95,689 with compounding. At the same time, the total fund deposited in the account will become Rs 17,64,95,689.
By doing SIP under this formula, after 10 years your investment of Rs 50,000 per month will grow to around Rs 1.12 crore. After 20 years, it will become around Rs 4.6 crore and by the end of 30 years it will cross the set target of Rs 15 crore. With the compounding effect, there will be a tremendous growth in this, where your returns will get higher over time.
keep these things in mind
Start investing soon: Experts also say that if you want to enjoy your post-retirement life without any financial problems, then start investing as soon as possible. In fact, the sooner a person starts investing money, the more time he will get for his money to grow with returns. Even a delay of 5-6 years can significantly reduce the final retirement corpus.
Maintain continuity: As mentioned, investing in the stock market is risky, so there can be fluctuations in the market, but it is important that investors maintain continuity and stick to the investment plan and avoid withdrawing their funds prematurely.
(Note- Before making any investment, please consult your market experts.)
Source (PTI) (NDTV) (HINDUSTANTIMES)