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Bhavaniprasad
Bhavaniprasad
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MF Expert, Financial Planner - Answered on Sep 19, 2023

Asked on - Sep 19, 2023Hindi

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My name is Bhavaniprasad & I am an Engineer by profession and my age is 34 yrs as of now. I want to retire at 55 years by accumulating sufficient money. In today's terms it could be 1.50 Crores. What amount is required to retire after 21 years? Now I have Rs. 1.00L premium policy in LIC Of India and SIP Rs. 1000/- per Month in SBI Small Cap Fund. Please suggest a way out.
Ans: You have already decided on the target corpus in today's value at Rs 1.5 Crore. So now if the same figure provided by you is inflation-adjusted at 6% (assumed avg. inflation) for the next 21 years, the figure comes to Rs 5.1 Cr in future value. To reach this corpus, one needs to invest about Rs 51-52,000 per month (Rs 6.1+ lakh per year) at an average return of 9% per annum. This monthly/annual investment amount needs to increase ny at least 5% every year in line with the increase in your salary.

Currently, you are investing Rs 1 lakh in LIC traditional plans which can give returns of 5-6%. The equity funds can give 10-11% average returns in the long run. So to reach the target corpus, you need to increase the investments in line with what the requirements have been suggested.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.
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Dev

Dev Ashish48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Sep 19, 2023

Asked on - Sep 19, 2023Hindi

Listen
Money
My name is Bhavaniprasad & I am an Engineer by profession and my age is 34 yrs as of now. I want to retire at 55 years by accumulating sufficient money. In today's terms it could be 1.50 Crores. What amount is required to retire after 21 years? Now I have Rs. 1.00L premium policy in LIC Of India and SIP Rs. 1000/- per Month in SBI Small Cap Fund. Please suggest a way out.
Ans: You have already decided on the target corpus in today's value at Rs 1.5 Crore. So now if the same figure provided by you is inflation-adjusted at 6% (assumed avg. inflation) for the next 21 years, the figure comes to Rs 5.1 Cr in future value. To reach this corpus, one needs to invest about Rs 51-52,000 per month (Rs 6.1+ lakh per year) at an average return of 9% per annum. This monthly/annual investment amount needs to increase ny at least 5% every year in line with the increase in your salary.

Currently, you are investing Rs 1 lakh in LIC traditional plans which can give returns of 5-6%. The equity funds can give 10-11% average returns in the long run. So to reach the target corpus, you need to increase the investments in lien with what the requirements have been suggested.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.
(more)
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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