Apr 28, 2025
Investing ₹5,000, ₹7,000, or ₹9,000 monthly at 25 allows compounding to work longer, making a huge difference to your final retirement corpus, say experts.
Experts highlight that compounding over 30–35 years can multiply even small SIP amounts into a large retirement fund by retirement age.
A ₹5,000 monthly SIP starting at 25, assuming a 12% annual return, could build a retirement corpus of around ₹1.76 crore by the age of 60, as per market estimates.
With ₹7,000 invested monthly, your retirement fund could touch approximately ₹2.47 crore by 60, thanks to the power of early investing and compounding.
Investing ₹9,000 monthly from age 25 could help you build a retirement corpus of nearly ₹3.17 crore by the time you retire, according to market calculations.
According to experts, maintaining discipline and consistency in SIPs over decades matters more than trying to time the market for better returns.
Investing in market-linked funds through SIPs, although subject to risks, offers the potential for higher long-term returns compared to traditional savings.
Gradually increasing your SIP amount by 5–10% every year can dramatically improve your final corpus without putting sudden pressure on your finances.
Many mutual fund SIPs qualify for tax deductions under Section 80C, giving young investors an additional incentive to save early for retirement.
Experts warn that delaying SIP investments even by 5–10 years means needing to invest much larger sums monthly to achieve the same retirement goals.
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