Albert Einstein once told "Compound Interest is the 8th wonder of the World. Those who understand will become rich. Those who don't understand will remain poor".
1. An equity mutual fund is a suitable investment product for 25-yr young earners, to build their healthy retirement corpus during their 35-yr earning life comfortably, by utilizing this 8th wonder.
2. Depending on their chosen fund's long-term performance, a systematic allocation of Rs. X from their monthly income into it could grow their total 35-yr investment (of Rs. 420X) into a retirement corpus of:-
a) Rs. 2143X (at 8%CAGR)
b) Rs. 3400X (at 10%CAGR)
c) Rs. 5460X (at 12%CAGR)
3. During their 35-yr retired life after 60, the same fund could then provide them a systematic monthly retirement income of:-
a) Rs. 13X (at 8%CAGR)
b) Rs. 27X (at 10%CAGR)
c) Rs. 51X (at 12%CAGR)
4. They can even stop further investment into the fund after retirement.
5. The icing on the cake is that the created retirement corpus remains intact for bequeathal to their near and dear ones.
1. An equity mutual fund is a suitable investment product for 25-yr young earners, to build their healthy retirement corpus during their 35-yr earning life comfortably, by utilizing this 8th wonder.
2. Depending on their chosen fund's long-term performance, a systematic allocation of Rs. X from their monthly income into it could grow their total 35-yr investment (of Rs. 420X) into a retirement corpus of:-
a) Rs. 2143X (at 8%CAGR)
b) Rs. 3400X (at 10%CAGR)
c) Rs. 5460X (at 12%CAGR)
3. During their 35-yr retired life after 60, the same fund could then provide them a systematic monthly retirement income of:-
a) Rs. 13X (at 8%CAGR)
b) Rs. 27X (at 10%CAGR)
c) Rs. 51X (at 12%CAGR)
4. They can even stop further investment into the fund after retirement.
5. The icing on the cake is that the created retirement corpus remains intact for bequeathal to their near and dear ones.