- Date : 31/08/2022
- Read: 4 mins
Best retirement funds for Rs 10 crores corpus.
A retirement fund will help you to maintain your lifestyle in old age. You should choose the right mutual funds and fixed instruments to get the desired corpus for your old age. But first, we need to figure out the amount you need to save per years to get your desired corpus. Here we assume that you need a corpus of Rs 10 crores.
If you start at age 25 and retire at 60 years of age and you are able to generate a CAGR of 12%, you need to save Rs 15,400 per month. If you start at age 35 and retire at 60, you need to save Rs 52,500 per month, assuming a CAGR of 12%. If you start at age 45 and retire at 60, you need to save Rs 1,98,000 per month at a CAGR of 12%. Thus it is clear that if you start late, you need to save much more.
Therefore, if you are young, you should make use of your savings at a young age. A small amount invested earlier will help you get the desired corpus.
If you start at 25 with just Rs 6,600, and you step up your savings by 5% per year as your salary will increase, assuming a CAGR of 12%, you can get your desired corpus of Rs 10 crores. Thus if you save a small amount at a young age and increase your retirement savings regularly, you can get your desired corpus.
But if you start at 35 years of age and you increase your savings by 5% per year, you need to save Rs 28,200 per month to get your desired corpus at a CAGR of 12%. Therefore, you need to save more if you start ten years later. You should figure out your desired corpus and your working years to estimate the retirement savings you need to make. Make sure you do not compromise on your lifestyle when saving for retirement.
Related: Focused funds vs Diversified Funds
Top retirement mutual funds in India
The retirement mutual funds have a lock-in period of 5 years. Although retirement funds form less than 0.5% of the mutual fund industry, and the returns have been lacklustre as compared to normal mutual funds, you can still choose retirement mutual funds to lock in your retirement savings for the long term. Retirement saving mutual funds ensure that you lock in the funds for the long-term. Also, you should make sure to re-invest the retirement saving funds, and you should not use your corpus to get consistent long-term returns.
Here are the best-performing retirement savings funds (Returns more than 1 Year are annualized):-
You should remember that past performance is no guarantee of future returns, but if you invest in these funds, you are likely to get good returns and save money for your retirement.
Related: A dummies guide to mutual funds
Retirement savings is tricky, and you need to be consistent in your savings. If you plan well and save a part of your salary from a young age, you are likely to have a sizeable corpus. Here we have discussed the various scenarios to achieve a corpus of Rs 10 crores. Although ten crores sounds like a sizeable corpus, if you plan well and save your money, you can easily get to that point. The trick is to start early and remain consistent. It is also important to understand How mutual funds are taxed in India.Best Retirement Fund | How to Build Retirement Corpus
Best Retirement Fund | How to Build Retirement Corpus
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
A retirement fund will help you to maintain your lifestyle in old age. You should choose the right mutual funds and fixed instruments to get the desired corpus for your old age. But first, we need to figure out the amount you need to save per years to get your desired corpus. Here we assume that you need a corpus of Rs 10 crores.
If you start at age 25 and retire at 60 years of age and you are able to generate a CAGR of 12%, you need to save Rs 15,400 per month. If you start at age 35 and retire at 60, you need to save Rs 52,500 per month, assuming a CAGR of 12%. If you start at age 45 and retire at 60, you need to save Rs 1,98,000 per month at a CAGR of 12%. Thus it is clear that if you start late, you need to save much more.
Therefore, if you are young, you should make use of your savings at a young age. A small amount invested earlier will help you get the desired corpus.
If you start at 25 with just Rs 6,600, and you step up your savings by 5% per year as your salary will increase, assuming a CAGR of 12%, you can get your desired corpus of Rs 10 crores. Thus if you save a small amount at a young age and increase your retirement savings regularly, you can get your desired corpus.
But if you start at 35 years of age and you increase your savings by 5% per year, you need to save Rs 28,200 per month to get your desired corpus at a CAGR of 12%. Therefore, you need to save more if you start ten years later. You should figure out your desired corpus and your working years to estimate the retirement savings you need to make. Make sure you do not compromise on your lifestyle when saving for retirement.
Related: Focused funds vs Diversified Funds
Top retirement mutual funds in India
The retirement mutual funds have a lock-in period of 5 years. Although retirement funds form less than 0.5% of the mutual fund industry, and the returns have been lacklustre as compared to normal mutual funds, you can still choose retirement mutual funds to lock in your retirement savings for the long term. Retirement saving mutual funds ensure that you lock in the funds for the long-term. Also, you should make sure to re-invest the retirement saving funds, and you should not use your corpus to get consistent long-term returns.
Here are the best-performing retirement savings funds (Returns more than 1 Year are annualized):-
You should remember that past performance is no guarantee of future returns, but if you invest in these funds, you are likely to get good returns and save money for your retirement.
Related: A dummies guide to mutual funds
Retirement savings is tricky, and you need to be consistent in your savings. If you plan well and save a part of your salary from a young age, you are likely to have a sizeable corpus. Here we have discussed the various scenarios to achieve a corpus of Rs 10 crores. Although ten crores sounds like a sizeable corpus, if you plan well and save your money, you can easily get to that point. The trick is to start early and remain consistent. It is also important to understand How mutual funds are taxed in India.Best Retirement Fund | How to Build Retirement Corpus
Best Retirement Fund | How to Build Retirement Corpus
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
