After a long back... Finally I come back to blogging.... Sorry got a little bit of Wrestlemania fever.
Planning for the retirement is one of the important step for every individual. When you plan for your future, you have to consider the yearly inflation rate. My best guess is you have to consider atleast 6% as a inflation rate. As I already said in Power of Compounding, one should start investing early for his/her retirement. Say for example Ramesh age is 25. He wants to retire at the age of 50 with 1 crore as corpus.
To accumulate 1 crore in 25 years seems to be tough. But if he systematically invest in the best performing mutual funds he can accumulate more than one crore. Ramesh start investing Rs.10,000 every month in any of the 5 to 10 top performing diversified mutual funds for next 25 years with 12% as his annualised return, he would accumulate 1 crore at the end of his 50th age. If the mutual fund returns 15% annualised return, then he would retire with 1 crore and 50 lakhs in hand at his age of 50.
When choosing the SIP, one no need to investigate much about the details of the mutual funds and its performance. Evaluation for every 3 years would be enough for such a long term investment. Try to pick atleast 5 to 10 top performing funds, because if 1 fund fails the other funds would help to balance your annualised return. So start invest in any top 5 star rated mutual funds today and retire as a Crorepathi.
Be patience and reap the benefits
Planning for the retirement is one of the important step for every individual. When you plan for your future, you have to consider the yearly inflation rate. My best guess is you have to consider atleast 6% as a inflation rate. As I already said in Power of Compounding, one should start investing early for his/her retirement. Say for example Ramesh age is 25. He wants to retire at the age of 50 with 1 crore as corpus.
To accumulate 1 crore in 25 years seems to be tough. But if he systematically invest in the best performing mutual funds he can accumulate more than one crore. Ramesh start investing Rs.10,000 every month in any of the 5 to 10 top performing diversified mutual funds for next 25 years with 12% as his annualised return, he would accumulate 1 crore at the end of his 50th age. If the mutual fund returns 15% annualised return, then he would retire with 1 crore and 50 lakhs in hand at his age of 50.
When choosing the SIP, one no need to investigate much about the details of the mutual funds and its performance. Evaluation for every 3 years would be enough for such a long term investment. Try to pick atleast 5 to 10 top performing funds, because if 1 fund fails the other funds would help to balance your annualised return. So start invest in any top 5 star rated mutual funds today and retire as a Crorepathi.
Be patience and reap the benefits
