Hi I am 41 need to start SIP which can avail me 1 lacks per month
after 15 years ,how much sip should i start from
Ans: Before anything, please understand that if you have Rs 1 Lakh of today in mind, then you will require Rs 2.39 Lakhs practically 15 years later to buy the same things that you can buy with Rs 1 Lakh today, assuming an inflation rate of 6% per year. And again due to inflation, this amount will keep increasing.
To generate a monthly income of Rs. 1 lakh after 15 years, you will need to invest a minimum of Rs. 90,000 per month through a Systematic Investment Plan (SIP) for the next 15 years.
Assumptions:
• You will continue to redeem amount equivalent to today’s Rs. 1 lakh every month after adjusting inflation until you are 80 years old.
• We have taken conservative SIP growth rate @11% per year.
• The inflation rate is 6% per year.
After 15 years, your SIP investment of Rs. 90,000 per month will grow to approximately Rs. 4.14 crores. This corpus will be sufficient to generate a monthly income of Rs. 1 lakh equivalent, even after accounting for inflation.
Note: This is just an estimate and the actual amount you receive will depend on the actual performance of your SIP investments.