Investment Tips: Those working in the private sector can arrange a fund of Rs 1 crore for retirement in this way

If you are working in the private sector, then this information can be very useful for you. In this era of rising inflation, it is very important to plan for your future. Everyone dreams of living a comfortable life after retirement, which is free from financial worries. If you also want to ensure that you do not run out of money during retirement, then we have a strategy for you. By following this investment method, you can create a retirement fund of millions of dollars. Let's find out how you can achieve this.

How much should you save for retirement?

To determine how much of your current salary you should save for retirement, you have to consider several factors such as your current income, risk tolerance, and most importantly time. How much time you have until retirement greatly affects your investment strategy and today we will discuss this.

How do people invest today?

Suppose you are early in your career and start saving at the age of 20. You have the opportunity to reap the benefits of investing over the long term. During this period, you can take more risks with your investments, such as investing in stocks and mutual funds, which generally offer better returns over time. However, if you start saving for retirement at the age of 40, you will need to be more cautious. At this stage, you should focus on safe and stable investments to protect your capital and ensure steady returns as you approach retirement, thereby protecting yourself from market volatility.

How much should you invest to save Rs 1 crore?

If your goal is to build a retirement fund of Rs 1 crore, it is important to select the right investment options based on their historical returns. One effective option is mutual funds. The next question is: how much should you invest every month to achieve this retirement goal?

If you are aiming to build a retirement fund of Rs 1 crore within 30 years, mutual funds can be a good option. Historically, mutual funds have given an average annual return of 12%. To reach your goal, you should start a systematic investment plan (SIP).

How will your investment grow?

Monthly investment: Rs 3,000
Estimated return: 12%
Total investment in 30 years: Rs 10,80,000
Total fund on maturity: Rs 1,05,89,741
Total interest earned: Rs 95,09,741

By investing Rs 3,000 every month in a mutual fund scheme that gives a return of 12%, you can accumulate more than Rs 1 crore. This will help you comfortably meet your retirement goals.