How many SIPs do you need to accumulate ₹10 crore by the age of 60?

Juzar Gabajiwala – Director, Ventura Securities

To deposit a fund of Rs. 10 crore at the age of 60, you need to invest monthly as follows based on your current age and risk appetite:

You can see that there are more years left to collect funds; Reduce SIP amount. Thus, the sooner you start; The compounding effect may work better for you!

The following schemes can be found in the below mentioned sections:

If you want to invest in multiple segments through a single fund, you can also consider multicap or flexicap schemes.

Nirav Karkera, Head of Research, Fisdom

For a young 30 year old investor seeking a target of INR 10 Cr. A SIP of ~35,000 by the age of 60 will help in achieving such a goal. It assumes that the investment grows at a rate of 12% annually. However, for an investor to delay such investments for a decade, the monthly contribution required to achieve the same goal would have been more than 3 times the monthly SIP commitment of ~INR 1.2 lakh to achieve the same corpus Is. While it is difficult to predict or control the performance of investments over the long term, an investor should focus on maximizing the two factors under control – the period invested and the amount invested.

The construction of the portfolio depends on the time, risk appetite and investment profile of the client. However, investors with an investment time horizon of at least more than five years and an appetite for high volatility should orient the portfolio towards equities. Flexicap funds can be a good starting point. Funds like PPFAS Flexicap Fund and Kotak Flexicap Fund are good funds in this category. For long term investors can include midcap and smallcap funds. Kotak Emerging Equity Fund, HDFC Midcap Opportunities Fund, SBI Smallcap Fund and Kotak Smallcap Fund are promising funds in this category. Investors seeking risk-optimal returns as well as low volatility can consider Dynamic Asset Allocation Funds like a combination of ICICI Balanced Advantage Fund and Edelweiss Balanced Advantage Fund.

Lakme founder Maitri Shah

To calculate how many Systematic Investment Plan (SIP) is required to accumulate a corpus of Rs. 10 crores by the age of 60 years, we need to consider several factors like:

> Present age of the person.

> Expected rate of return on investment.

Let us assume that the person is currently 30 years old and wants to deposit a corpus of Rs. 10 crores by the age of 60 years. Further, assume that the expected rate of return on the investment is 12% per annum.

So, one has to invest around Rs. 1,75,000 per month through SIP at the age of 30 for the next 30 years to build a corpus of Rs. 100 million. I would recommend a few mutual funds:

1. Balanced Funds: Balanced funds are mutual funds that invest in a mix of equity and debt securities, with a fixed asset allocation ratio that is maintained throughout the investment period. The asset allocation ratio of a balanced fund typically ranges from 60:40 to 80:20, with equities representing a higher portion of the allocation. The objective of Balanced Fund is to provide a balanced approach to investment with moderate level of risk and stable returns.

2. Dynamic Asset Allocation Fund: Dynamic asset allocation funds are mutual funds that invest in a mix of equity and debt securities, but the asset allocation ratio is not fixed. The asset allocation ratio of Dynamic Asset Allocation Fund is adjusted based on the market conditions and the market outlook of the fund manager. Dynamic Asset Allocation Fund aims to provide high returns by taking advantage of market conditions and managing risk by adjusting the asset allocation ratio.

3. Index Fund: Index fund is a type of mutual fund which aims to replicate the performance of a specific market index such as S&P 500, Nifty 50 or BSE Sensex. Index funds invest in the same stocks or bonds that make up the underlying index in the same proportion as the index.

CA Manish Mishra, Virtual CFO

Assuming an annual inflation rate of 5%, investors would need to make monthly SIP investments of approx. To deposit a fund of 1,44,000 10 crores by the age of 60 years, assuming an annual return of 15%, investment tenure of 30 years and present age of 30 years. It is important to note that actual returns may vary depending on market conditions and other external factors.

To achieve this goal, investors can consider Equity Growth Mutual Fund schemes like Mirae Asset Large Cap Fund, Axis Bluechip Fund, ICICI Prudential Bluechip Fund, SBI Bluechip Fund, HDFC Mid-Cap Opportunities Fund, Aditya Birla Sun Life Frontline Equity Fund can do. Kotak Standard Multicap Fund, which has given consistent returns over the years. However, it is always advisable to consult a financial advisor before taking any investment decision.

Kabir Mehta: Operations and CFO in the digital future

Investing your money requires a well-thought-out plan that is personalized to your financial goals. Apart from contributing to your EPF, VPF can be an excellent option to optimize your 80C savings if you are looking to save for a secure retirement. To determine the right amount for your VPF contribution, it is important to assess what is left in your 80C bucket. For example, if you earn INR 1 lakh per month, save INR 67,000 annually in EPF, and have other 80C deductions of INR 40,000, the balance bucket needs to be covered with a monthly VPF contribution of INR 4,300. It is recommended.

To enhance your retirement planning strategy, it is essential to diversify your investment portfolio and consider factors such as risk tolerance, investment horizon and financial goals. A balanced mix of savings including EPF, VPF, NPS and ELSS can help ensure that you have enough funds when the time comes. The best part is that all pension savings are free from taxes. Therefore, it is highly recommended that you carefully assess your objectives to make an individual decision on where to invest your hard earned money.

Additionally, it is important to regularly monitor your investment performance and make necessary adjustments to ensure that you are on track to achieve your objectives. Taking advice from a financial expert can also be beneficial in making an informed decision about where to invest your money. By working with an experienced professional, you can gain valuable insight into market trends, investment opportunities and risk management strategies.

Overall, it is essential to approach your investment decisions with careful consideration and thoughtful planning. By taking the time to assess your objectives, diversify your portfolio and seek expert advice, you can make informed decisions that will help you achieve your financial goals and secure a comfortable retirement. Remember that investing in your future is a lifelong process, and every step you take today can have a significant impact on your financial well-being in the future.