Best Retirement Plan: The habit of investing early is always good for a better future. In this way, you can create a big fund by the age of retirement.
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Retirement Planning: Good planning is necessary for a good retirement life. You can create a big fund by investing a small amount or a lump sum amount from the beginning. Your investment grows over time due to the benefits of compound growth. Let’s try to know today how a lump sum investment of Rs 6,00,000 can turn into a fund of Rs 1.80 crore?
Early start is good
It is always good to start investing for retirement fund at an early age. For example, if a person starts a monthly SIP investment of Rs 5000 and gets 12 percent annual return on it, then he can create an estimated fund of Rs 3.25 crore in 35 years. Whereas his investment during this period will be only Rs 21,00,000. Similarly, if a person invests a lump sum amount of Rs 5 lakh and gets 12 per cent annual return on it, he can create an estimated corpus of Rs 1,49,79,961 in 30 years.
This is how 6 lakhs will grow
Now let us take the example of a lump sum investment of Rs 6 lakh. We consider the investment period as 30 years and the annual return as 12 percent. Now we will see how this money will grow in 10, 20 and 30 years. The estimated capital gain in 10 years will be Rs 12,63,509 and the estimated corpus will become Rs 18,63,509.
Magic of Compound Growth
The estimated capital gain in 20 years will be Rs 51,87,776 and the estimated corpus will be Rs 57,87,776. Similarly, the estimated capital gain in 30 years will be Rs 1,73,75,953 and the estimated corpus will be Rs 1,79,75,953. Here we see that this corpus is growing rapidly every 10 years. This is due to compound growth on returns, which gets faster with time.
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