Want to accumulate ₹10 crore by age 50? You need this much monthly SIP

Investment planning is needed at an early stage of one’s career for 10 crore retirement corpus by the age of 50. 

60 years is a big number in India which is generally considered as the retirement age. People plan their career and retirement-oriented financial savings according to this age number. However, the idea of retiring earlier is open to people if they have saved enough for the life ahead of them.

In order to retire early, one will have to start investing at least by the time they are 25 years of age as per tax and investment experts. The experts further added that mutual fund SIP (systematic investment plan) will help accumulate hefty amounts with small monthly investments provided the investments are long-term.

SEBI registered tax and investment expert, Jitendra Solanki said on the topic of the possibility to accumulate ₹10 crores by the age of 50, “To create ₹10 core retirement corpus by age of 50 requires financial discipline and investment planning at the early phase of one’s career is must.” He added that in order for a person to retire by 50 years of age, he should start investing for his retirement fund by the age of 25 years. Mutual fund SIP will be the best option for such investors as at this age the chances of having a huge lumpsum amount for investment are little.

Jitendra Solanki added, “Investing ₹26,000 at 25 years of age might not be easy. But, if someone is dead adamant to achieve ₹10 crore investment goal when he or she turns 50, then there requires some financial discipline and commitment to the investment goal.” He advised the investors to increase one’s annual step-up rate by 15 per cent, instead of starting with ₹26,000 monthly SIP.

According to Solanki’s views, if an investor starts a SIP at the age of 25 with an investment goal of ₹10 crores assuming 12 per cent annual return and the annual-step-up rate is 15 per cent. Then the monthly SIP of ₹14,750 will allow the investor to gain ₹10,02,55,880 or ₹10.02 crore.

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