A systematic investment plan (SIP) can help individuals build a Rs 5 crore retirement corpus by investing in mutual funds. The power of compounding, combined with disciplined investing through SIPs, can turn financial independence into reality. Starting with a monthly SIP of Rs 6,000 to Rs 10,000 can help achieve the corpus goal of Rs 5 crore. SIPs offer affordability, flexibility, and long-term growth. Starting early can help take advantage of compounding, as starting at age 25 with Rs 6,000 monthly can reach an estimated Rs 5 crore by around 55 years of age. SIPs are suitable for all ages, including families saving for children’s education or marriage, and even retirees managing their post-retirement finances. Starting at age 35 would require either a higher SIP amount or a longer investment period. The estimated return on an SIP is approximately 38 years, with capital gains and retirement corpus estimated at Rs 5,60,20,415, Rs 3,35,60, and Rs 5,09,39,981.
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