Planning Your Retirement? Here's How You Can Build A Rs 2 Crore Corpus Through SIP

While it is never too early to start your journey, here is a strategy where if you are still going to be a salaried professional for the next 35 years, you can start investing in this plan.

Additionally, building a corpus of Rs 2 crores can easily help you retire early.

But How Do You Achieve This?

Behind the biggest and the smallest of wealth generation plans and savings plans is the concept of compounding, which helps you build a sizeable corpus fund even if you invest a modest amount of money every month.

Building A Retirement Plan

One of the essentials of every individual's saving plans is to build a fund for their retirement to ensure financial security due to the rising cost of living.

Additionally, retirement funds are designed to support your lifestyle and long-term goals during the post-retirement years, providing you steady income when regular earnings stop.

Retirement goals can vary from one individual to another based on individual targets and appetite and one of the most popular ways to plan for one's retirements is through mutual funds as they have a potential for higher returns.

How To Build A Rs 2 Crore Corpus Through SIP?

If an individual wants to build a retirement corpus worth Rs 2 crore, mutual funds can help them achieve this goal faster than traditional tools like fixed deposits.

To achieve this, they can implement an effective asset allocation strategy by planning an early start and staying invested for a longer period of time.

A mutual fund systematic investment plan (MFSIP) can help in building a retirement corpus through small monthly investments.

If you start investing at an annual return of 12% and invest for a span of 35 years, you will need to pay a monthly SIP installment of Rs 3,700, your total investment value will be of Rs 15.54 lakh, On this amount you will get estimated returns of Rs 1.88 crore and the final value of your corpus will be Rs 2.04 crore.

This amount will also attract taxes. Additionally, the value is also not adjusted for inflation. Therefore, investors are advised to decide their investment amount as per their needs.

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