Retirement Planning Tips: Need Rs 1 crore after retirement? Start this work today

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If you want to have enough money to live your life well, then you have to prepare for it now. The earlier you start, the more funds you will be able to raise for your retirement. Let’s try to understand how long it will take to build a retirement fund of Rs 1 crore by investing Rs 10,000 every month in a systematic investment plan (SIP).

For a retirement fund of Rs 1 crore, we will calculate here based on 10%, 12%, and 14% annual rates of return on investment. Past trends with regard to returns on mutual fund SIPs show that the 10-14% CAGR is moderate and can be easily achieved. Let’s see how an investor of 25 years of age can invest Rs 10,000 every month and earn Rs 1 crore at different rates of return.

SIP: 10% annual return

Time to reach 1 crore fund: 22.5 years (age 47.5 years)

Total investment: Rs 27 lakh

Expected Profit: Rs 74.64 lakh

Total fund in 22.5 years: Rs 1.02 crore

In this sense, a 25-year-old person can become a millionaire in 22.5 years by investing Rs 10,000 per month in mutual funds through SIP.

SIP: 12% annual return

Time to reach 1 crore fund: 20 years (age 45 years)

Total investment: Rs 24 lakh

Expected Return: Rs 76 lakh

Total Fund: Rs 1 crore

A retirement fund of Rs 1 crore can be achieved in 20 years with a 12% annual return on an investment of Rs 10,000 per month.

SIP: 14% annual return

Time to reach 1 crore fund: 18.5 years (age 43.5 years)

Total investment: Rs 22.2 lakh

Expected Return: Rs 83 lakh

Total Fund: Rs 1.05 crore

With a 14% return on investment of Rs 10,000 every month, investors can achieve the target of Rs 1 crore fund in just 18.5 years.

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About the Author

Sweta Mitra

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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SwetaMitra@timesbull.com Author at TimesBull TimesBull
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food, and books. For feedback - timesbull@gmail.com
Sweta Mitra - Author at TimesBull
About the Author

Sweta Mitra

Sweta Mitra - Author at TimesBull

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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