Retirement fund: Rajesh has not started any kind of investment in NPS yet. Rajesh has invested Rs 19,670 in HDFC Index with SIP of Rs 5,000. Experts say that this is a low cost index, but there is a lot of profit margin in it.
Advantages of SIP
Whether employed or self employed. Everyone’s concern is about retirement. Everyone thinks that when the body gets tired, it will not work, then what will happen to the expenses. In view of this, some people worry about the betterment of old age in their youth. Such people always think that add some money now so that there is no shortage in old age. But how can it be that by adding a few rupees, you can collect so much money that the later expenses can be met with pleasure.
Suppose Rajesh wants to collect Rs 1.5 crore at the time of retirement after 31 years so that the expenses can be covered comfortably. This planning is for the retirement of Rajesh. Rajesh only wants that one should learn from the current situation and save money in any case. For this, they take advice from experts. Experts tell them that right now there are many types of funds in which the desired amount can be raised by investing money.
Rajesh tells his expert that at present he has started investing in some funds. What should be changed in the future, how much should be increased the investment so that the target of Rs 1.5 crore for retirement can be easily achieved. For this, experts give them complete information.
Invest in this fund
Rajesh has currently invested in SIPs of 5 funds. These 5 funds include HDFC Index, Axis Midcap, Axis Small Cap, Parag Parekh Flexi Cap and Motilal Oswal S&P 500. Rajesh has not started any kind of investment in NPS yet. Rajesh has invested Rs 19,670 in HDFC Index with SIP of Rs 5,000. Experts say that this is a low cost index, but the scope of profit in it is very high. It can give huge returns in the long run. Therefore, this SIP should be continued and every year it should be increased by 10%.
Increase SIP by 10% every year
To take the retirement corpus to Rs 1.5 crore, it is advisable to increase investment in other funds as well. For example, Rajesh has deposited Rs 4,246 in Axis Midcap and has a SIP of Rs 2,000. Experts say that this fund has given very good returns in the recent months. Therefore, one should continue investing in Axis Midcap SIP and increase it by 10% every year. Axis Small Cap comes at number three in which Rajesh has deposited Rs 3,201. In this, he has started a SIP of Rs 1,000. This fund is also included in the list of outperformers. Looking at its success, the investment should continue and increase by 10% every year.
Investment in NPS is also necessary
At number four is Parag Parekh Flexi Cap in which Rajesh has deposited Rs 4,300. Rajesh has started SIP of Rs 1,000 in this. Regarding this, experts suggest that Rajesh should increase the SIP by Rs 3,000 and later increase this flexi cap fund by 10-10 percent every year. Motilal Oswal S&P is at number five.
Rajesh deposits Rs 4,128 in this. He has a SIP of Rs 1,000. According to experts, one should continue investing in it and increase the deposit amount by 10% every year. Rajesh has not been able to take any NPS yet, but experts say that this scheme is the best for retirement and also tax free. In view of this, one should definitely take NPS.
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