Mutual fund SIP calculator: You don't become a crorepati in a day, it requires a systematic investment plan (SIP): years of hard labour before you taste the sweet ‘cash fruit’. Many people seek advice on how to build a retirement fund of ₹5 crore. According to personal finance experts, the key takeaway is to begin saving early in your career to benefit from favourable investment returns. Even a year's delay in retirement planning can greatly affect the corpus of your retirement fund. Hence, one should start early to reap the benefits of the magic of compounding.
“Turning the ₹5 crore dream into reality is absolutely practical through early and consistent SIPs if one lets compounding work its magic. Starting SIPs in your 20s to the tune of ₹8,000 per month into quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass ₹5 crore by 60," said Ashish Aggarwal, Director, Acube Ventures.
Even beginning in your 30s demands a higher monthly SIP of about ₹21,000 for the same impact. The key is elongating investment horizons beyond 25 years, carefully selecting funds, and stepping up contributions during earnings peak to capture compounding tailwinds fully. This underscores why making every rupee work hard from a young age achieves financial freedom and trounces inflation by a mighty margin, added Ashish Aggarwal.
According to the Upstox SIP calculator, a 35-year-old would need to invest ₹27,000 per month for the next 25 years to build a corpus of ₹5 crore by the age of 60, assuming a 12 per cent annual rate of return and monthly compounding.
As per the SIP calculator, the invested amount of eighty-one lakh will turn into five crore twelve lakh thirty-six thousand one hundred and forty-seven.
For example,
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