Mutual Fund Calculator: Ravi Ujjwal is a 30 year old professional with a monthly take home salary of 75,000. He wants to retire at the age of 55 and for this his personal calculations show that he will need Retirement fund of 20 crores in hand after 25 years. However, he does not want to take a highly risky asset allocation like investing directly in the stock market. On whether his investment goal is financially viable or not, tax and investment experts believe that the goal is quite achievable as the investor had 25 years in hand and Mutual Fund SIP can be an investment option that suits Ravi. Investing Tools may solve the search. However, experts say that the simple investment formula will not work. Hence, some punishment would be required in Ravi’s case.
speaking at the required sentence to receive 20 crore retirement fund in 25 years, says Pankaj Mathpal, MD & CEO, Optima Money Managers, to deposit 20 Crore Retirement Fund in 25 Years, Annual SIP Step Up to be used This will help the investor to keep his initial monthly SIP to the minimum possible amount. Hence, instead of continuing with the same monthly SIP amount for 25 years, I suggest increasing the SIP amount with the increase in one’s income. Hence, annual SIP step up is an important optimization that one must follow religiously during this period Investment Duration.”
Increases in annual SIPs that an investor can maintain to accumulate 20 crores in 25 years, Karthik Jhaveri, Director – money management Transcend Capital said, “Generally, we recommend a 10 per cent annual increase in one’s monthly SIP amount. However, 20 crore retirement corpus in 25 years is highly ambitious and hence, I would suggest a 15 per cent annual step up. Using this one would be able to start with the lowest possible monthly SIP amount mutual fund Travel 20 crore retirement fund accumulation.”
15 x 15 x 15 Rule of Mutual Funds
“The 15-year track record of mutual funds on an average shows 15 per cent returns on the amount invested for 15 years,” said Karthik Jhaveri, Transcend Capital. an investor invests 15,000 per month for 15 years in a mutual fund SIP plan, the returns can be expected to be at least 15 per cent.
mutual fund sip calculator
Assuming 15 per cent annual return on the money invested for 25 years using 15 per cent annual step up, the mutual fund return calculator suggests that one would need to start a mutual fund SIP 21,500 per month. However, to be on the safe side it is recommended to start with 22,000 monthly SIP as mutual fund investments are also subject to market risk.
See below SIP calculator:
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Using 115 percent annual growth, an investor can expect to receive 20,50,02,443 by investing the maturity amount 5,61,77,357 in 25 years.
Disclaimer: The views and recommendations above are those of individual analysts or personal finance companies and not Mint’s. We advise investors to do due diligence with certified experts before making any investment decision.
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