If you invest up to Rs 400 per day, you can accumulate a corpus of at least Rs 10 crore by the time you reach the age of 60.
It is the dream of each of us that when we retire, we should have few crore rupees. But, it is not difficult to do so. Just for this, you have to walk a little focused in your work life. With disciplined investments this can be done.
Money9 is giving you a simple example of earning crores at the time of retirement.
If you invest up to Rs 400 per day, you can accumulate a corpus of at least Rs 10 crore by the time you reach the age of 60.
What does math say?
Suppose a person starts earning at the age of 25, then all you have to do is start saving Rs 400 per day.
This amount works out to Rs 12,000 per month. You have to make this investment till the age of 60 years.
Investment destinations should be such where you can get 12-13 per cent annual return.
Experts believe that for such a purpose, you should invest in hybrid or balanced mutual funds or equity based funds.
Balanced funds usually give 12-13 per cent average returns. On the other hand, equity based funds give 15-16% returns in the long run.
Suppose you invest in a hybrid fund that gives 13% p.a. returns.
By saving Rs 12,000 a month for 35 years, you can get Rs 10.2 crore.
During this you will deposit Rs 50.2 lakh and you will get a profit of Rs 9.7 crore.
Ambitious plan
If you can take more risk for a long time, then the returns you get will be higher. Any equity based fund can offer at least 15% returns and over a period of 35 years your money will be Rs 18 crores.
What do experts say
Experts are of the opinion that investing in mutual funds through SIP is the best way to invest. It never puts too much burden on you.
Nilotpal Banerjee, a certified personal finance planner, says, “SIP is a great option. But, since you have to invest for 35 years, you should have a stable risk appetite.”
Nilanjan Dey, director, Wishlist Capital Advisors, says, “It will take three market cycles to invest for three decades. You will get a lot of protection through SIP investment.
