Mutual Fund Calculator: Monthly SIP You Need to Accumulate ₹14 Crore by Age 50

 

• Mutual Fund SIP Calculator: The 15 X 15 X 15 rule of mutual funds says that investing Rs 15,000 every month for 15 years can grow to Rs 1 crore

Mutual Fund Calculator: Due to the challenging professional life and increasing workload at the workplace, a good number of salaried individuals wish to retire a little earlier. For such professionals one needs to start investing from the early stages of one's career.

According to tax and investment experts, investing from early life enables an investor to achieve such a goal with minimal risk. He said that one can plan for early retirement by investing in mutual funds. He advised young professionals to invest in monthly mutual fund SIP (Systematic Investment Plan) as it gives returns of around 15 per cent annually in the long term.

Speaking on the importance of investing early in Mutual Funds, Pankaj Mathpal, MD & CEO, Optima Money Managers said, “If an investor starts investing from a young age or from 25 years, he has around 35 years to invest. In such a case, if a professional is planning to retire early or say by the age of 50, he/she will still have 25 years to invest, which is not a short time."

15 X 15 X 15 Rule of Mutual Funds

To remind how investing from an early age can help an investor achieve their investment goals easily, Pankaj Mathpal said, "The 15 X 15 X 15 rule of mutual funds needs to be remembered. This rule says that if an investor invests ₹15,000 for 15 years, then one can expect a 15% return on his money and the maturity amount will be around ₹1 crore. However, I suggest the investor to invest in annual Increase your monthly SIP amount with the increase in your annual income using SIP Step-Up. This will increase the chances of achieving one's investment goal with the lowest possible monthly SIP amount."

On what annual SIP would be appropriate for an investor, Karthik Jhaveri, Manager – Wealth Management, Transcend Capital, said, “Generally, we recommend increasing the annual SIP by 10 per cent. But, if one retires by the age of 50, For such professionals, I suggest to use SIP at 15% per annum.


mutual fund sip calculator

If an investor starts a monthly SIP with ₹15,000 at the age of 25, one can expect 15 per cent annual returns on one's money over the next 25 years, as per the 15 X 15 X 15 rule of mutual funds. As per the SIP calculator, if an investor uses 15 per cent annual growth in his monthly SIP, he would be able to grow around ₹14 crore in 25 years or till he turns 50.