If youngsters start investing at a young age they can build a good sizable corpus at retirement age. They can choose the systematic investment plan (SIP) method to invest in mutual funds.
At a young age one can invest a small amount to build a huge retirement corpus, specially in options offering compound interest or growth. If you start early you can invest in equity funds or focused funds such as retirement mutual funds.
Let us see how much corpus you can build in 20, 25, and 30 years by investing in SIPs worth Rs 3,000, Rs 5,000, and Rs 10,000.
SIP Of Rs.3000 For 20,25,30 Years
If you start investing at 25 years of age with a Rs 3,000 SIP per month, invest it for 20 years in a row, and get a 12 percent return on it.
At 45 years of age, your investment will be Rs 7,20,000, your long-term capital gains will be Rs 22,77,444, and your total expected amount will be Rs 29,97,444 (nearly Rs 30 lakh).
If you continue the investment for more than five years, that is after a total of 25 years, at 50, your investment will be valued to Rs 900,000, your long-term capital gains will be Rs 47,92,905, and the total expected amount will be Rs 56,92,905.
Samer way after 30 years, at the age of 55 your investment will be Rs 10,80,000, long-term capital gains will be Rs 95,09,741, and the total amount will be 1,05,89,741.
SIP Of Rs 5,000 For 20, 25, 30 Years
If you start investing Rs 5,000 per month via SIP and get minimum a 12 per cent annualised return on your investments, at 45 years of age, your investment will be Rs 12,00,000, your long-term capital gains will be Rs 37,95,740, and the total amount you will receive after 20 years will be Rs 49,95,740.
If you invest for a total of 25 years, at 50 years of age, your invested amount will be Rs 15,00,000, your long-term capital gains will be Rs 79,88,175, and your expected amount will be Rs 94,88,175.
At 55 years of age, your investment through SIP will be Rs 18,00,000, long-term capital gains will be Rs 1,58,49,569, and the total amount will be Rs 1,76,49,569.
SIP Of Rs 10,000 For 20, 25, 30 Years
Let us assume if you invest Rs 10,000 a month through an SIP when you are 25 years old, invest it for 20 years, and get a 12 per cent annual return on the investment,
at 45 years of age- Your investment will be Rs 24,00,000, capital gains will be Rs 75,91,479, and the expected amount will be Rs 99,91,479.
If you invest for 25 years, at 50 years of age, your investments will be 30,00,000, and long-term capital gains will be Rs 1,59,76,351, while the expected amount will be Rs 1,89,76,351.
Read More: How To Get A Rs 40,000 Monthly Pension With NPS: Calculation Guide
A total of 30 years, at 55 years of age, your investments will be Rs 36,00,000, your long-term capital gains will be Rs 3,16,99,138, and your expected amount will be Rs 3,52,99,138.
