Starting SIP At 35? Find Out How Much You Need To Invest To Become A Crorepati
Planning for retirement becomes increasingly urgent as you age. While starting at 25 gives you ample time to accumulate wealth, beginning at 35 leaves you with only 25 years to build a sufficient retirement corpus by the age of 60. So, how much should you invest through a Systematic Investment Plan ( SIP ) to reach the milestone of becoming a crorepati ?
Becoming a crorepati might seem like a significant achievement today, but in 25 years, it could be a necessity given the rising inflation and decreasing value of the rupee. Therefore, starting retirement planning alongside your career is a wise decision to ensure financial security in your later years. Among the various investment options, Mutual Funds SIP is considered one of the best for building a substantial corpus. Despite being market-linked, SIPs generally provide excellent long-term returns that outpace most other schemes.
Becoming a crorepati might seem like a significant achievement today, but in 25 years, it could be a necessity given the rising inflation and decreasing value of the rupee. Therefore, starting retirement planning alongside your career is a wise decision to ensure financial security in your later years. Among the various investment options, Mutual Funds SIP is considered one of the best for building a substantial corpus. Despite being market-linked, SIPs generally provide excellent long-term returns that outpace most other schemes.
SIP Investment to Become a Crorepati by Age 60
Here’s how much you should invest depending on your current age:
At Age 35
If you're 35 years old, you have 25 years to save before retirement. To reach a corpus of over one crore, you need to start a SIP of at least ₹6,000 per month. Over 25 years, you will invest a total of ₹18,00,000. With an estimated annual return of 12%, the interest earned would be approximately ₹95,85,811. By the time you turn 60, your total investment value will be ₹1,13,85,811.
At Age 30
If you’re 30 years old with 30 years until retirement, you should consider starting a SIP of ₹3,000 per month. Over 30 years, this will amount to a total investment of ₹10,80,000. With a 12% annual return, you would earn around ₹95,09,741 in interest, giving you a total of ₹1,05,89,741 by age 60.
At Age 25
Starting at 25 gives you 35 years to save, allowing you to become a crorepati with a smaller SIP of just ₹2,000 per month. Over 35 years, you would invest ₹8,40,000. With the same 12% return, the interest would amount to ₹1,21,50,538, making your total corpus ₹1,29,90,538 by age 60.
Why SIP in Mutual Funds is a Smart Choice
Investing in mutual funds through SIPs is a safer alternative to directly investing in the stock market. SIPs typically offer an average annual return of around 12%, which is significantly higher than most government schemes. Thanks to the power of compounding, your money grows rapidly over time, making long-term SIPs an excellent option for wealth creation.
Starting your SIP early, even with a smaller amount, can yield substantial returns by the time you retire, ensuring financial independence and security in your golden years.
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