SIP, you need to get 1 lakh monthly income after retirement

On an investment tool that can help Sakshi achieve his goal after retirement; Vinit Khandare, CEO and Founder of MyFundBazaar India Private Limited, said: “Inflation after retirement also needs to be kept in mind. To achieve this ambitious goal of ??1 lakh of monthly income after retirement, we can consider creating a corpus of about ??13 crore that can be invested in the SWP (Systematic Withdrawal Plan) for the next 25 years. “

Vinit Khandare of MyFundBazaar India has advised investors like Sakshi to go for SIP (Systematic Investment Plan) equity mutual funds as they return around 12-14% in the long term. He said investments in equity mutual funds easily beat inflation in long-term investments. He also advised a 15% annual increase in SIP as it helps an investor reduce their monthly SIP to the lowest possible levels.

Mutual Fund Calculator

Supposing ??Investment goal of 13 crore in mind, about 13% mutual fund return and 15% annual increase in its mutual fund SIP, the SIP calculator suggests it would take about ??17,000 to ??18,000 monthly SIPs for 25 years to achieve ??1 lakh of monthly income after retirement.

Asked about mutual fund SIP plans that can help an investor achieve the aforementioned investment goal; Pankaj Mathpal, Founder and CEO of Optima Money Managers listed the following 5 mutual fund plans:

1]ICICI prudential targeted equity fund;

2]ABSL Equity Advantage Fund;

3]Axis Midcap Fund;

4]Nippon Small Cap Fund; and

5]ICICI Prudential Global Advantage Fund.