Planning to retire at 50? Find out the monthly SIP amount needed for a ₹10 crore corpus..

An increasing number of people in India aspire to retire at the age of 50. In fact, many have already achieved this by planning their finances well in advance. For most investors, early retirement is synonymous with proactive planning. Retiring with a corpus of ₹10 crore is certainly feasible; however, building such a substantial fund requires a cautious and strategic approach to one's investment journey. While creating a fund of this magnitude is possible, it demands favorable market conditions and a clear investment strategy.

Opting for a Systematic Investment Plan (SIP) in mutual funds also requires a well-structured plan. The power of compounding—which becomes increasingly effective over time—will handle the rest of the work.

Building a ₹10 crore corpus via a monthly SIP over 25 years:

Monthly Investment: ₹25,000

Step-up % (Annual): 10%

Investment Tenure: 25 years

Estimated Rate of Return: 12%

Invested Amount: ₹2,95,04,117

Estimated Returns: ₹7,73,84,534

Total Value: ₹10,68,88,652

The calculations indicate that to maximize returns and achieve the ₹10 crore goal, you need to start with a monthly SIP of ₹25,000. Additionally, you must increase your contribution by 10% annually. Skipping this annual step-up or reducing it to 5% could significantly impact the total invested amount and the time required to reach your financial goal.

View the calculation here:

Monthly investment amount: ₹25,000

Step-up % (annual): 5%

Investment tenure: 28 years

Estimated rate of return: 12%

Total amount invested: ₹1,75,20,774

Estimated returns: ₹8,41,55,949

Total value: ₹10,16,76,724

You can see here that reducing or eliminating the 'step-up' method—which involves periodically increasing the SIP amount—could jeopardize your ability to achieve your goal. Starting with a ₹25,000 SIP might not be practical for many people early in their careers. Therefore, it is advisable to adopt the 'step-up' approach in your SIP plan; this allows your investments to grow alongside your rising income without causing financial strain.

Investors should also note that expert advice is crucial for long-term investments. Consulting certified professionals can help you understand your risk appetite and create an investment plan tailored to your lifestyle.

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