There is also a saying that when you wake up, it will be dawn. That is, if you have not started SIP yet and your age is around 40, then you can still start SIP and prepare a fund of crores of rupees till your retirement.
Mutual Fund SIP: Mutual Fund SIP has fulfilled many dreams of many people and will continue to do so in future. According to AMFI data, SIP has been giving huge returns in the long term for the last several years. To enjoy the real fun of SIP, it should be run for as long as possible.
When you wake up, it will be dawn
If for any reason you could not start SIP earlier, then there is nothing to regret. There is also a saying that when you wake up, it will be dawn. That is, if you have not started SIP yet and your age is around 40, then you can still start SIP and prepare a fund of crores of rupees till your retirement.
SIP’s 40x20x50 formula will create a fund of crores of rupees
With the 40x20x50 formula of SIP, you can start SIP at the age of 40 and create a fund of Rs 5 crore by the time you retire i.e. 60 years of age. In the 40x20x50 formula of SIP, 40 means the age of starting SIP, 20 means investment for 20 years and 50 means SIP of Rs 50,000 every month. If you start investing by following this formula, then after 20 years i.e. when you turn 60, you can have a fund of Rs 5 crore.
A fund of Rs 5 crore will be ready in 20 years
If you get an estimated average return of 12 percent every year for 20 years, then with this investment you can create a fund of Rs 5 crore in 20 years. If during this period you get an estimated return of 14 percent instead of 12 percent, then after 20 years you can have a fund of up to Rs 6.5 crore.
(Disclaimer: Investments in mutual funds are subject to market risks. Before investing, do your own research or consult your advisor.)
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