Saving Rs. 5 crore in 10 years is an ambitious target especially considering that this investment will have to be made in addition to your other financial obligations. The first thing you need to consider is the type of investment that can help you reach this retirement saving goal.
Considering that you have 10 years to reach your goal, investing inEquity Mutual Fundsis definitely the best option for a chance to secure high returns and reach your retirement savings goal.
But apart from choosing the right investment, you will also have to be disciplined when making your investments. One way to make disciplined investments in an Equity Mutual Fund over the long term is to start a Systematic Investment Plan (SIP).
The monthly SIP amount that you will need to invest to reach your retirement savings goal of Rs. 5 crore in 10 years will depend on the returns that you will receive from your investment. However, the returns from Equity Mutual Funds are not guaranteed. Hence you have to consider a few different monthly SIP amounts based on different possible returns as shown in the table below:
| Monthly SIP Required to Accumulate ₹5 Crore in 10 Years | |||
| Expected Annual Returns | 10% | 12% | 14% |
| Monthly SIP Required | ₹2.42 lakh | ₹2.16 lakh | ₹1.91 lakh |
As you can see, for average annual returns of 10%, you will need a monthlySystematic Investment Planof Rs. 2.42 lakh to save Rs. 5 crore in 10 years. While this is a substantial amount, this sizable monthly SIP will give you the best chance of reaching your retirement savings goal.
