Starting at 35? Here’s How to Build a ₹5 Crore Corpus by Age 60

Learn the monthly SIP investment needed to achieve your financial goal.

Building a retirement corpus of Rs 5 crore may seem daunting, but with the power of compounding and disciplined investing through a Systematic Investment Plan (SIP), it is achievable. Personal finance experts emphasize starting early to take advantage of favorable investment returns.

The Magic of Compounding

Compound interest reinvests earnings on your principal, allowing your investments to grow exponentially over time. SIPs offer average cost benefits and eliminate the need to worry about market fluctuations, making them a preferred investment choice for disciplined savers.

SIP Calculations for Rs 5 Crore Corpus

If you’re starting at 35 and aiming to retire with Rs 5 crore by 60, here’s what you need to know:

Investment Details for 25 Years (Age 35-60):

• Monthly SIP: Rs 26,500 – Rs 27,000

• Expected Annual Return: 12%

• Total Investment: Rs 79,05,000 – Rs 81,00,000

• Expected Returns: Rs 4.20 crore – Rs 4.31 crore

• Total Maturity Amount: Rs 5 crore – Rs 5.12 crore

Comparison With Starting Earlier

Starting earlier reduces the monthly SIP amount required significantly:

• Starting at 30 (30 Years Tenure): Monthly SIP of Rs 14,200.

• Starting at 25 (35 Years Tenure): Monthly SIP of Rs 7,700.

This demonstrates the impact of starting early and utilizing compounding to its full potential.

Benefits of SIP Investing

• Disciplined Saving: Regular investments ensure consistent growth.

• Market Independence: SIPs average out market highs and lows over time.

• Long-Term Growth: With compounding, your returns grow significantly over time.

Important Tips

• Start Early: Even a year’s delay can increase the amount required to reach your goal.

• Annual Reassessment: Review and adjust your SIPs based on performance and financial goals.

• Diversify: While SIPs are effective, consider other investments like PPF, NPS, or equity.

• Consult Experts: Financial advisors can help tailor your investment strategy to your needs and risk tolerance.

Disclaimer

Investing in mutual funds is subject to market risks. It is advisable to consult with a certified financial advisor before making any investment decisions.

By starting your SIPs early and staying disciplined, achieving a Rs 5 crore corpus by retirement is well within reach.