With careful financial planning, mutual funds can allow you to build sufficient funds before your retirement. Let’s read more and learn how you can become financially secure.
If you have recently turned 30 and are looking for some investment opportunities, then you have come to the right place. This is the perfect age for building a fund worth crore of rupees within the next 30 years. Financial experts suggest that you can achieve this dream by making strategic investments in mutual funds. With financial discipline, you can make mutual funds a reliable avenue for growth.
How much to invest in SIP?
By saving Rs 100 every day that is Rs 3000 in a month, and depositing that amount towards mutual funds, you can accumulate a fund of Rs 4.5 crore over a span of 30 years. However, this can only happen if you follow a systematic approach for mutual fund investments.
With compound interest at a rate of 15% over a 30-year period, along with strategic use of the Step-Up SIP method, you can make funds worth crores of rupees. With an annual increase rate of 10%, you can create sufficient funds, fulfilling your financial goals.
What is 10% Step-Up?
10% Step-Up refers to increasing the total monthly investment amount by 10% each year. For instance, if you start with an initial investment of Rs 3000 in SIP, then 10% Step-Up would mean increasing this amount by 10% every year. This gradual increase can help you build more funds. In thirty years', the maturity amount can reach around Rs 4.5 crore.
According to the SIP calculator, you will invest a total of Rs 59,21,785 over 30 years. With returns alone, you will gain around Rs 3.9 crore in profits.
Being careful
Before making SIP investments, conduct a thorough research by yourself. Seek guidance from a market expert if you’re a first-time investor. It is crucial to educate yourself before making any investment. Moreover, it is also important to diversify SIP investments. This reduces the risk of financial losses and can help you benefit from different funds and sectors.
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