SIP calculator: You need to deposit ₹10 cr in 25 years for monthly savings

Manish Mishra speaking on how one can submit 10 crore in the next 25 years; Pankaj Mathpal, MD & CEO, Optima Money Managers, said, “For retirement planning, one has to keep inflation in mind. I suggest investors to consider 9-10 per cent annual rate of inflation while investing for retirement corpus. And any instrument they choose should have the potential to beat this rate of inflation. For a long term of 25 years, I would suggest an investor like Manish to go for equity mutual funds. Will beat this rate and help Manish to meet his investment target.” He said that monthly investments through Systematic Investment Plan (SIP) will make it easier for Manish to deposit 10 crore investment target in 25 years

15 X 15 X 15 Mutual Fund Rule

Manish advises to remember the 15 X 15 X 15 rule of mutual funds; Amit Gupta, MD, SAG Infotech said, “Mutual Funds have an impressive 15 X 15 X 15 rule where an investor can become a millionaire by investing. 15,000 per month for 15 years, one is expected to return 15 per cent from one’s investment. However, in the case of Manish Mishra, who wants to achieve 10 crore investment target in 25 years, I would suggest the investor to maintain an annual growth of 15 per cent in monthly SIPs. In that case, for a period of 25 years, the SIP return calculator or mutual fund calculator suggests 11,000 monthly investment would be enough to deposit Manish 10 crore in 25 years.”

When asked about mutual fund SIP plans, which can give 15 per cent per annum return over the long term, Vineet Khandare of MyFundBazaar listed the following mutual fund SIP schemes:

Small-cap funds: SBI Small Cap Fund – Regular Growth;

Mid Cap Funds: Aditya Birla Sun Life Mid Fund – Plan – Growth Regular Plan; And

Large-Cap Funds: HDFC Top 100 Fund – Regular Plan – Growth.