Mutual Fund Calculator 2023: Invest in This SIP to Get Rs 20 Crore by the Age of 55

Investment markets are booming right now, with people all across the world taking interest in stock markets as a way to earn money on the side. However, what about people who wish to invest money without the risks involved in the highs and lows of the stock market?

Investing in mutual funds can be an effective way of mobilizing investments. How can you ensure you have a generous retirement fund in place? Experts give their insight on how a person can in 25 years, create a 20 crore retirement fund at 55.

According to Optima Money Managers’ Pankaj Mathpal, MD and CEO: "One must use annual SIP step-up in order to generate a 20-crore retirement fund over the course of 25 years. This will assist the investor in maintaining their first monthly SIP at the lowest possible level. So, my recommendation is to increase the SIP amount as one's salary increases rather than maintain the same monthly SIP amount for 25 years. Hence, stepping up SIPs on an annual basis is a crucial modification that should be followed rigorously throughout the investment time."

Kartik Jhaveri, Director of Wealth Management at Transcend Capital, commented on the annual SIP step-up that an investor can maintain to acquire 20 crores in 25 years: "In general, we suggest increasing one's monthly SIP contribution by 10% annually. However, achieving a 20 crore retirement fund in 25 years is very ambitious, so I would recommend a 15% annual step-up. By using this, one would be able, to begin with, the lowest monthly SIP contribution amount feasible to begin the mutual fund journey of accumulating 20 crores in retirement funds."

Mutual fund 15 x 15 x 15 rule:

According to Kartik Jhaveri of Transcend Capital, the return on a mutual fund SIP over 25 years should be expected to be: "Mutual funds' 15-year track record generally indicates a 15% return on the money invested over that time. This suggests that the return one would expect would be at least 15% if they invested Rs 15,000 per month for 15 years in a mutual fund SIP plan." For 25 years, he claimed, one could expect the same 15% return on their SIP.

Calculator for SIPs in mutual funds:

The mutual fund return calculator proposes starting a mutual fund SIP with 21,500 per month if one assumes a 15% annual return on their investment over a 25-year period using a 15% annual step increase. However, as investments in mutual funds are also exposed to market risk, it is advised to start with a monthly SIP of Rs 22,000 in order to be safe.