SIP Calculator: It is important to prepare for retirement in time. You should identify your retirement needs and focus on creating a fund accordingly. Starting saving early can help you create a large fund in the long term. However, if you are a young person and want to target a retirement fund of Rs 1 crore or Rs 2 crore, then you should increase this target. In fact, in the coming times, this fund may also fall short due to rising inflation.

Inflation will decrease the value of money

With an assumed annual inflation rate of 5 percent, the value of Rs 1 crore and Rs 2 crore after 20 and 25 years will depreciate to around Rs 38 lakh and Rs 30 lakh respectively. It would be wise to create a fund of Rs 5 crore to deal with inflation.

In how much time will the fund of 5 crores be ready

• As per SIP calculator, a monthly saving of Rs 50,000 is required to create a corpus of Rs 5 crore in 20 years
• The monthly savings required to create a corpus of Rs 5 crore over 25 years is Rs 26,500
• If the target is to reach Rs 5 crore in 30 years, a monthly saving of Rs 14,250 would suffice

Note: This calculation is based on an estimated return of 12% in SIP. This return may be more or less in the long term.

These funds gave good returns

It is worth noting that Nifty index funds have given an annual return of 18% in the last 5 years, while multi-cap mutual funds have given a CAGR of more than 25% in the last 5 years. Many other equity mutual fund schemes have also performed well.