Financial Planning: If enough money is accumulated after retirement, retirement can be enjoyable. If you also want to live a comfortable retirement life, just saving is not enough. But you can create good wealth from that savings by making proper financial planning.
Over the past few years, mutual funds have emerged as an attractive investment option. If you want to build a large corpus for your post-retirement needs, you can invest in mutual fund schemes through SIP. You can easily create a fund up to Rs 1 crore or Rs 2 crore. But, for this you will have to do a solid planning.
Investing in mutual funds and other savings instruments
Anand Dalmia, co-founder and CBO of Fisdom, in a media interview explained how one can retire at 55 with proper investments. He said that with the help of SIP investments and other savings instruments, Rs. A retirement fund of Rs 2 crore can be created.
Invest through SIP
An investor wants to retire at the age of 55. Till then it will be Rs. Want to create a retirement fund of Rs 2 crore. Now his age is 35 years. On which Dalmia, while explaining about the investment plan, said that to create a bigger fund for retirement, it is necessary to increase the SIP amount as the income increases. A person who wants to retire after 20 years should invest about 60-70 percent of his investment in mid and small cap funds through SIP. The remaining 30 percent money can be invested in flexicap funds. To get more compounding benefits, this money will have to be invested in the direct scheme of mutual funds.
More benefits from investing in direct scheme
Dalmia said, “We generally recommend investing around 60-70 per cent in midcap and smallcap funds to build a larger corpus for retirement. The rest can be invested in flexicap schemes that invest in large cap funds. He said that funds up to Rs 2 crore will be generated in 20 years through this investment strategy.
