By starting investing at a young age, one can achieve this goal with minimal risk. Experts advise youth to invest in Monthly Mutual Fund SIP (Systematic Investment Plan).
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Nowadays the life of people has become very challenging. Work load on people is increasing. therefore, many Salary People now want to retire early. Such people should start investing from the beginning of their career. According to tax and investment experts, at a young age investments By starting one can achieve this goal with minimum risk. Experts advise youth to invest in Monthly Mutual Fund SIP (Systematic Investment Plan) as it gives an annual return of around 15 per cent over the long term.
According to experts, if the investor starts investing at the age of 25, then he will have about 35 years to invest. So, let’s say he wants to retire by the age of 50, he still has 25 years to invest, which is not a short time.
Investing early will get big benefits
By starting investment at a young age, a person can easily achieve his goal. This can be understood through the 15 X 15 X 15 rule of mutual funds. According to this rule, if the investor invests Rs 15,000 for a period of 15 years. So he can get 15% return on his money. And the amount on maturity will be around Rs 1 crore. However, experts say that investors should increase their monthly SIP amount along with the increase in their annual income. This can be done through annual SIP step up. With this, a person will be able to achieve his goal easily with minimum monthly SIP amount.
According to experts, a 10% annual SIP step up is generally recommended. But if the investor is thinking of retiring by the age of 50, then for this he can use 15% annual SIP step up.
understand the calculation
If an investor starts a monthly SIP at the age of 25 with Rs 15,000, then according to the 15 X 15 X 15 rule of mutual funds, he can get an annual return of 15% on his money for the next 25 years. Now according to the SIP calculator, if the investor uses 15% annual step up in monthly SIP, then over a period of 25 years, by the time he turns 50, he will be able to collect around Rs 14 crore.