Want to create 2 cr corpus at retirement through sip

Ans: Planning early gives you more power.

A clear goal builds financial discipline.

Rs 2 crore is realistic if you stay committed.

Start With Goal Understanding

Retirement goal is long term.

Assume retirement age near 60.

You have time if age below 35.

Corpus of Rs 2 crore needs structured approach.

SIP is right tool for this journey.

Monthly Investment Estimation

Do not use exact formula here.

Higher SIP gives quicker target.

Smaller SIP takes longer time.

The longer the time, the smaller the monthly need.

Decide how many years till retirement first.

Then check how much you can save monthly.

Also keep room for yearly SIP increases.

Power Of Step-Up SIP

Don’t keep SIP fixed forever.

Increase SIP by 10% yearly if possible.

Income grows yearly, SIP should grow too.

Even Rs 1,000 monthly rise adds up.

Discipline matters more than amount.

Why SIP Is Powerful

SIP removes timing pressure.

You invest monthly at different market levels.

Volatility becomes your friend long term.

Small money grows big with time.

It builds habit along with wealth.

Choose Right Type Of Mutual Funds

Stick with actively managed equity mutual funds.

These funds select best companies.

They change portfolio when needed.

Indian market rewards stock picking.

Index funds copy market blindly.

Index funds hold bad stocks until replacement.

Active funds remove poor stocks faster.

This protects you in down years.

You also get better downside control.

Avoid Index Funds For This Goal

Index funds do not suit retirement building.

They offer no human research advantage.

Same stocks get overweight in bull run.

No risk management during correction.

They can drag your long-term return.

Active funds give higher return potential.

That makes them better for wealth creation.

Regular Plan Over Direct Plan

Do not invest through direct mutual fund plans.

Direct funds lack expert help and review.

Many investors panic and stop SIPs.

That spoils long term compounding.

Regular plans come with support system.

You get guidance from Certified Financial Planner.

They track performance, rebalance if needed.

Also they offer goal mapping.

Charges are slightly higher but worth it.

Portfolio Diversification Strategy

Don’t invest in only one fund.

Use 3 to 4 equity funds.

Pick different fund styles and fund houses.

This spreads risk properly.

Avoid fund overlap while choosing schemes.

Keep large cap, flexi cap, mid cap mix.

Add international equity later if goal permits.

Track With Discipline

SIPs need patience and tracking.

Don’t change funds every year.

Review portfolio once each year.

Check performance with 3-year and 5-year return.

Compare with category average, not just index.

Don't exit fund after one bad year.

Funds need time to show true value.

How To Handle Market Volatility

Markets go up and down always.

Don't stop SIP when markets fall.

Instead, increase SIP when markets fall.

That improves average purchase price.

Panic exits destroy compounding magic.

Mutual Fund Capital Gains Tax Rule

Know taxation to avoid surprises.

Equity fund gains above Rs 1.25 lakh taxed.

Tax rate is 12.5% on gains.

Short term gains taxed at 20%.

Debt fund gains taxed as per slab.

Track gains yearly and harvest smartly.

Emergency Fund First

Before SIP, build emergency buffer.

Keep 3 to 6 months of expenses ready.

Park that in liquid mutual funds.

Emergency money protects SIP during job loss.

Health And Life Insurance Next

Buy term life insurance before SIP.

Cover should be 10 to 15 times salary.

Also take family health insurance.

Don’t mix insurance with investment.

Avoid ULIPs or traditional LIC plans.

Only pure term and separate mutual fund.

If Holding LIC, ULIP Or Mix Plans

Check past return and surrender value.

If return is below inflation, exit.

Redirect funds to equity SIP.

Term insurance is better than bundled plans.

Monthly Budget For SIP

Save minimum 30% of income monthly.

Part of that goes into SIP.

Start with Rs 10,000 if possible.

Increase by Rs 1,000 every year.

If salary increases, raise SIP faster.

Other Smart Habits

Automate SIP from salary account.

Set SIP date 2 days after salary day.

Avoid skipping SIP for shopping or travel.

Don’t pause SIP unless true emergency.

Role Of Certified Financial Planner

CFP understands goals and risks.

They create plan based on real numbers.

They review funds each year for you.

Also help adjust SIPs based on life stage.

They act as guide during market fall.

You stay calm with their support.

Steps To Start

Pick Certified Financial Planner.

Share income, goals, and expenses.

Get personalised SIP roadmap.

Link goals to each SIP folio.

Avoid doing everything alone without plan.

What To Avoid

Don’t invest in NFOs or trendy products.

Don’t chase highest return fund every year.

Don’t rely on relatives for fund tips.

Don’t check NAV daily.

Don’t invest lumpsum without strategy.

Avoid ULIP, endowment or moneyback plans.

How To Track Goal

Use simple Excel or mobile app.

Track corpus built vs target.

Update values every 3 months.

If gap appears, top-up SIP.

Keep goal deadline visible on wall.

Final Insights

Rs 2 crore corpus is fully possible.

You need time, SIP and discipline.

Use active equity mutual funds only.

Invest via regular plan with MFD and CFP.

Avoid index funds and direct plans.

Keep emergency fund and insurance in place.

Review your plan every year.

Stay focused. Stay regular. Stay long.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment