National Pension System

NPS (National Pension System) is a govt. sponsored pension scheme. Since its launch, it has seen many changes. There are many questions come in one's mind when one considers investing in NPS. In this short guide you will get answers to lot of your NPS related queries. Hope you will find this guide useful.

21 Point Guide to NPS

1. While opening NPS account, an individual (of age between 18-65) can get only one PRAN (Permanent Retirement Account Number).
    
2. An NPS subscriber must first open a Tier-1 account. If she wishes, later she can open a Tier-2 account also. But without opening a Tier-1 account, one cannot apply for a Tier-2 account.
    
3. Tier-1 account is meant to accumulate money over long term for retirement goal.
    
4. Tier-2 account can be considered as liquid version of Tier-1 account. From Tier-2 account one can withdraw as many times without giving any penalty fee. Investing in Tier-2 account does not offer any tax benefit though. 
    
5. One cannot transfer money from Tier-1 account to Tier-2, but reverse is allowed.
    
6. Withdrawal options from Tier-1 account is limited. There can be either ‘partial withdrawal’ or ‘full withdrawal’.
    
7. Partial withdrawal from Tier-1 account can happen only after 10 years of subscription is over. The maximum amount which is allowed to be withdrawn in case of ‘partial withdrawal’ is 25% of the contribution amount. So, if your investment of amount of Rs. 5 lakhs in NPS becomes 7 lakhs after 10 years – then you can withdraw maximum Rs. 1.25 lakhs (25% of 5 lakhs). Such partial withdrawal amount will not be taxed.
    
8. Partial withdrawals from Tier-1 account is allowed only if there is a valid reason like – higher education or marriage of children, purchase or construction of residential house, treatment of specified diseases.
    
9. Maximum 3 partial withdrawals (from Tier-1 account) is allowed during the entire tenure and there must be minimum gap of 5 years between 2 withdrawals (in cases of treatment of specified illness this ‘minimum gap’ clause is waived off).
    
10. Full withdrawal from Tier-1 account can happen (a) on retirement at the age of 60 (b) before retirement (c) upon death of subscriber.
     
11. Maximum amount that can be withdrawn at the time of retirement is 60% of the accumulated wealth and balance 40% needs to be utilized for the purchase of annuity providing monthly pension to the subscriber. Out of this 60% of the accumulated wealth, 40% is exempt from tax. Say, for example at retirement Mr. A buys annuity of Rs. 40 and accumulates Rs. 60 then he will pay tax on Rs. 20 only. If Mr. B buys annuity of Rs. 60 and accumulates Rs. 40 then he will not pay any tax. Income from annuity will be taxable though.
     
12. If one makes full withdrawal from Tier-1 account before retirement, then compulsorily he will have to buy annuity by 80% of the amount. Rest 20% can be accumulated and will be exempt from tax.
     
13. The amount withdrawn in the event of death of subscriber shall be exempt from tax. The entire accumulated pension would be paid to the legal heir/nominee of the subscriber. However, in case of govt employees, the entire amount cannot be withdrawn. Purchase of annuity plan is mandatory by the nominee.
     
14. If the total amount at the time of retirement is less than Rs. 2 lakhs then entire amount can be accumulated.
     
15. NPS offers 2 types of investment choices – Active Choice and Auto Choice.
     
16. Under ‘active choice’ you can choose from 3 different asset mix. These are ECG. E class of asset mix has maximum 50% allocation to equity and rest 50% to corporate bonds and govt. securities. C class of asset mix has 100% allocation to corporate bonds. G class of asset mix has 100% allocation to govt. securities. One can change investment option and asset allocation ratios twice in a financial year. 
     
17. Under ‘auto choice’ asset allocation will happen automatically as per age of the subscriber. 
     
18. There 7 fund managers currently managing NPS funds. They are from SBI, LIC, UTI, ICICI, Reliance, Kotak and HDFC.
     
19. Investment up to Rs 1.5 lacs into NPS in a financial year is eligible for deduction under Section 80CCD(1). Please note this deduction comes under the overall ceiling of Rs 1.5 lacs for deduction under Section 80C. 
     
20. Up to Rs 50,000 per financial year for any investments into NPS under Section 80CCD (1B). This deduction is over and above the ceiling limit of Rs 1.5 lacs provided under Section 80C. Or in other words, if one exhausts the entire limit available under 80C, then only this section will become applicable.
     
21. Though one can join NPS till the age of 65, but after joining one can contribute till the age of 70.

WHAT ARE LIQUID FUNDS? HOW DO THEY WORK?

Liquid cash is usually deposited in the savings bank deposits. But as the name suggests, a savings account is not an investment account and thus, the deposited money doesn’t earn much interest. Customers save their liquid cash in their bank account as the amount is accessible anytime.

Well, isn’t it wonderful if there is an investment vehicle that allows liquidity besides providing some returns? One such investment vehicle is ‘liquid mutual funds’. Experts suggest parking 1 month’s expenses in the savings account and 3 to 6 months expenses in a liquid mutual fund, so that the money grows money.

What Are The Benefits Of Liquid Mutual Funds?

Liquid funds are debt mutual funds that invest your money in short-term market instruments such as government securities, treasury bills, and call money. Benefits from the liquid mutual funds include:

• The earnings earned through dividends are tax-free.
• Post-tax returns after dividend distribution tax are better than the returns from the savings account.
• No exit load on the redemption of liquid funds done overnight.
• Liquid funds provide the discipline of not keeping excess unproductive money with self.
• They contribute to long-term investment goals.
• The best part is even while you rest, your money does not.
• Liquid fund investments are considered least volatile as they are invested in instruments with high credit rating, hence least risky.
• Investors can redeem and get the money in their bank account on the next working day of the redemption.

When Can You Invest In Liquid Mutual Funds?

If you have a short time period to make an investment, it is better to park your money in liquid funds as they invest in instruments up to a maturity of 91 days. Park your money for short periods ranging from 1 day to 3 months.

Thus, it is better to park excess liquid cash in channels that help earn better returns at the same time provide liquidity. Returns from the liquid mutual funds are usually higher than the returns from bank savings account. Take wise money decisions to let your money earn more money. For more advice u can contact Money Farmers.

THINGS TO CONSIDER BEFORE BUYING LONG-TERM ANNUITY

The mere thought of running out of money during retirement seems scary. So looking out for the income sources that keep us going during the retired phase gets crucial. One such investment product that turns your invested money into a regular source of income is an annuity. Here are major factors to consider before buying a long-term annuity product.

Returns & Restrictions: Earlier, immediate annuity products used to offer comparatively lower returns. Now, the returns being offered by the annuity products are comparable with that of others. Additionally, an annuity offers guaranteed rates for life, whereas most products in the market come with the restriction on the tenure or maximum deposits.

Safety & Age: Older investors look for assured-return products like annuities. Debt mutual funds can also generate similar returns but accompany risks. Thus, annuities may be beneficial as retirement income. Coming to the age, the rates move up with age for the return of premium annuities. Thus, the decision to lock in should be taken based on the available rates and age. Younger investors should also consider the issue of taxability.

Diversification & Taxation: Never put all the eggs in one basket. Guaranteed annuity for life may be a positive feature but do not invest everything in it. Diversification is important to rule out deviations in the interest rate. Lock no more than 50% of your retirement corpus in annuities and the rest 50% in other instruments. As the annuity amount is treated as pension, marginal taxes are levied on them. And the annuity includes a part of the principal, so even that is taxable.

How to calculate capital gains and tax liability on inherited property

Shobhana has inherited a non-agricultural plot worth Rs 10 lakh from her late grandmother. The plot was bought before 1980. What are the tax implications for Shobhana? Will she have to pay tax on her inheritance, considering the plot will be transferred in her name? 

What if she wants to sell the property? Will the proceeds be fully tax-exempt, since she only inherited it and did not acquire it? Considering that no cost of acquisition is available, how will she compute the gains for taxation purposes? 

There is no tax liability for Shobhana at the time of inheritance. However, any profits made on the sale of inherited land are taxable as capital gains.This implies that should Shobhana decide to sell it, capital gain from sale of the inherited property will be fully taxable in her hands. Therefore, it is important that she secures the documents substantiating the inheritance of land. 

Having said that, the period of holding will be considered from the date of purchase by her grandmother. The cost at which her grandmother bought the house prior to 1980 shall be considered as cost of acquisition. But since the cost of the land is not available and the same has been acquired before 1 April 1981, fair market value of the land as on 1 April 1981 can be considered as the cost of acquisition. For ascertaining the same, Shobhana must engage the services of a registered valuer. 

The LTCG shall be computed as the difference between net sale proceeds and indexation cost of acquisition. For indexation, the cost of acquisition should be adjusted by applying the cost inflation index (CII). CII for 1981-82 and the financial year in which Shobhana sells the property will be considered. 

The year of inheritance has no importance in the calculation of long-term capital gains. She can also add the costs incurred with respect to procedures associated with the will and inheritance, obtaining succession certificate, costs of executor, property valuer etc. while computing the cost of acquisition. 

In case there are any residual capital gains, Shobhana may have to either pay tax on it at the rate of 20% or save capital gains tax ax by buying specified bonds u/s 54EC. 

Why you should not stop SIP despite stock market hitting new highs

Lakhs of investors have turned to systematic investment plans (SIPs) of mutual funds in recent months. SIP inflows have increased rapidly—investors pump in close to Rs 4,500 crore every month through this option, compared to just Rs 1,200 crore a month in early 2014. The average ticket size of a SIP has also jumped from Rs 1,800 to Rs 3,200 per month today. 

At the same time, some investors are feeling concerned about investing more at a time when markets are close to all-time high levels. SIPs help the investor average his cost over a period of time, fetching more units when prices are low and fewer units when prices are high. In the current scenario, the SIP investor will accumulate units at higher prices, which will push up his average cost of purchase. Therefore, some investors want to sit out and wait for the markets to correct. Should you also stop your ongoing SIPs to avoid buying at high prices? 

No, say investors with long-term experience in the market. Over the years, these individuals have learned to ignore the market noise and continue their SIPs month after month. This unwavering discipline has helped them build an impressive corpus, letting them achieve key goals in life or putting them within touching distance of the same.We discussed critical aspects of how to make SIPs work for you. 

Returns depend on how investors treat SIPs 
Regular investors earned more than those who lost their nerve or tried to time the market. 

HOW TO MANAGE MONEY AFTER RETIREMENT

Retirement is not an event but a long phase in your life that can last up to 35 years. During those decades, inflation will cut down the value of your savings ruthlessly. If your savings do not earn enough, then you are going to run out of them within your lifetime. 

Nothing can be worse than a long period of old age where you are gradually losing prosperity and then eventually entering poverty. 

And yet, all around you, you can see any number of senior citizens to whom this is happening. So how can you prevent this from happening to you? The first part, which I wrote about in detail last week, is to save enough during your working years and then invest the savings in equity -backed mutual funds.

The second part, which I’ll discuss today, is how to derive income from these savings after you have retired. If you have understood what I’ve been saying about inflation, then the basic requirement is self-evident: you should spend only that part of your investment returns that exceed the inflation rate. This is another way of saying that you must preserve the value of your principal. 

However, the single most important thing to understand in this whole business is that you must reserve the real, inflation-adjusted value of your principal, and not just the nominal face value. 

So how do you do this? Let’s take a simplified example. Suppose you retire today with say Rs 1 crore as your retirement savings. You place it in a bank fixed deposit. A year later, it is worth Rs 1.07 crore. So you have earned Rs 7 lakh, which you can spend, right? Not so fast. Assuming a realistic inflation rate of 5%, if you want to preserve the real value of your principal, you must leave Rs 1.05 crore in the bank. That leaves Rs 2 lakh that you can withdraw to spend over an year, which is Rs 16,666 a month. 

Is that enough? For a middle class person, surely not. It could be a little worse with some banks, and it could be a little better for something like the Post Office Monthly Income Scheme, but basically, this is it for any supposedly fixed income asset class. The interesting thing is that this calculation does not change even when interest rates rise because inflation and interest track each other quite closely. 

It’s actually a publicly declared goal of the RBI (from Raghuram Rajan’s time) that a real (meaning inflation-adjusted) interest rate is 1.5 to 2%. However, the actual rate tends to be lower, especially when compared not to the official inflation rate but the real inflation that you face. 

This means that if you need Rs 50,000 a month, you need Rs 3 crore. Of course, at that level, income tax also kicks in and about Rs 30,000 a year will have to be paid. It’s actually worse, there have been long periods of time when the fixed income interest rate has been below the inflation rate. 

Moreover, the tax has to be paid whether you realise the returns or not. There can be a situation (often is, in fact) when the interest rate barely exceeds the inflation rate and the income tax on the interest is effectively reducing the value of the money. 

The situation is very different in equity-backed mutual funds. Unlike deposits, they are high earning but volatile. In any given year, the returns could be high or low, but over five to to seven years or more, they comfortably exceed inflation by 6-7% or even more. 

For example, over the last five years, a majority of equity funds have returns of 12% per annum or more, some as high as 20%. The returns may have fluctuated in individual years, and that’s something that the saver has to put up with, but the threat of old age poverty does not exist. In such funds, one can comfortably withdraw 4% a year and still have a comfortable safety margin. 

On top of that, there is no income tax. As long as the period of investment is greater than one year, returns from equity funds are completely tax free. This means that to have a given monthly expenditure through equity funds, you need just half the investment that you would in deposits. So for a monthly income of Rs 50,000 a month, Rs 1.5 crore will suffice instead of Rs 3 crore. And no matter how high your savings and expenditure, it’s all tax free. 

I find that a small but growing number of people have begun to understand and appreciate this idea and have started doing it. They tend to be those who have used equity funds as their savings vehicle anyway and are used to the idea of ignoring short-term volatility in the interest of long-term gains. However, the vast majority of Indian retirees are still wedded to the mythical safety that deposits provide and end up facing tragic problems as they grow older. There’s no need for you to be one of them.

Why you should invest in MFs

After demonetisation in November 2016, many investors are using mutual funds as a preferred vehicle to route their savings into the financial markets. ET tells you why mutual funds are good investment options and what their advantages are. 

Is there a mutual fund product that will match my requirements? 

Mutual funds have various product categories -from liquid funds, in which investors can invest from as little as a day, to equity mutual funds where one  .. 

Read more at:
http://economictimes.indiatimes.com/articleshow/58728050.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Are direct plans of mutual funds destroying your wealth?

Everyone loves direct plans of mutual fund schemes these days. In their quest to save commissions paid to mutual fund advisors, many mutual fund investors, especially novices to mutual funds, have been lapping up direct plans in a big way. However, their mutual fund portfolios along with their approach to investing, present a scary picture. Many of them are just adding one top-star scheme after the other to the portfolio, without bothering to educate themselves about investing in mutual funds. W .. 

Read more at:
http://economictimes.indiatimes.com/articleshow/59139854.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

CHILD FINANCIAL FUTURE PLAN

Every parent aspires to offer a secure and quality life to his child. But when it comes to finances, many miss out on making the right investment choices at the right time. Here we listed the best investments that can secure the child’s future and help meet all the financial needs.

1. Systematic Investment Planning (SIP): The SIP is the best option for 2 main reasons i.e. the longer time-frame (10 to 15 years) and the simple mode of investment. A monthly investment of INR 5,000 in mutual funds for 18 years can fetch approximately 19.5 lakhs, assuming 12% annual returns. Due to the compounding power, returns clearly beat the inflation rate of 6% every year. So, the key lies in the time-frame of the investment rather than the invested amount.

SIPs or mutual fund investments into a well-diversified portfolio for long-term are best to meet the future big money needs like the kid’s higher education or marriage.

2. PPF: The Public Provident Fund (PPF) scheme has become the popular investment option for its impeccable EEE (exempt, exempt, exempt) feature. The first exempt is that the investment is allowed for tax-deduction. No tax is levied on the returns earned through accumulation. And the total amount withdrawn at the end would also be tax-free. Funds are deposited in PPF accounts for a fixed time period to earn interest on savings. As per the Union Budget 2016, the interest rate on PPF for the financial year 2016-2017 is 8.1%.

The PPF scheme’s long tenure is apt for the money needs life child’ marriage or higher education.

3. Sukanya Samriddhi Scheme: This initiative from Government of India is designed to encourage saving for the girl child. It can be opened any time between the birth and the age of 10 years. Minimum INR 1,000 and maximum INR 1.5 lakh annual investments can be made for 14 years. Maturity period for the account would be 21 years from the day of account opening. The attractive interest rate that is however subject to change, is the main feature. It is another EEE product eligible for tax exemptions under Section 80C.

The scheme is ideal for a girl child to meet higher education and marriage needs. Also, the scheme allows partial withdrawals after the child attains 18 years of age.

4. Debt Funds: Debt funds are a type of mutual funds generating returns from the investments into various deposits or bonds. These funds simply earn interest by lending the money deposited by the investors and this interest is the source of returns. The short-term debt funds can deliver up to 7% to 8% annual returns. They are more flexible and allow withdrawal or investments whenever required. If the income from mutual funds is invested for at least 3 years, it can be taxed at a lower rate.

Debt mutual funds are ideal for child’s recurring expenses like school fees, extra activities, clothing, transport and medical expenses, due to the liquidity and safety of the deposited amount.

5. Term Insurance Cover: Secure your child against any unforeseen event by taking a proper term insurance cover. Have a proper risk cover to reduce the financial impact on the lives of your dependents in your absence.

Avail a term insurance that covers all the major expenses of child-like marriage, education as well as livelihood he or she turns adults.

Approach experts to make a thorough financial planning and meet all your money goals of life. Online fiduciary, is established to make personal finance planning services available to every individual. Value your earnings and make right investments.

                                                                                                                                           By Artha Yantra

FINANCIAL PLANNING

People work hard and earn their livelihood. But many do not focus on the regular mistakes they commit, which burn out their pockets. Identify such common mistakes, made by almost everyone, and avoid them to add more value to your hard-earned money. We attempted to list out some of them below.

No Track Of Spending: The most common money mistake people make is not tracking their spending. They live paycheck to paycheck, which means making the payments and spending the remaining amount. It is unhealthy to ignore finances. Put efforts to sit down, track all your spending and prepare a budget. Give no scope for unnecessary spendings and save as much possible towards dedicated goals.

Using Cards More Than Cash: Studies indicate that people who make purchases using credit card   tend to spend 12% more than those who use cash. Moreover, many opt to make minimum monthly payments towards the credit card bills, rather than paying off the total balance. These common money mistakes turn costly, leading to unwanted debts. In contrary, using cash helps avoid impulse spending besides limiting the purchases to the budget.

Overspending On Gifts: Spending on gifts is not always realized due to the emotional bonding with the dear ones. However, it does not make sense to spend heavily just to surprise people. Rather, show your affection through other deeds like helping them with their work, giving your time, assisting them in reaching higher career goals, etc. 

Bad Tax Planning: Tax-planning is one area where many go clueless, losing a huge amount every year. Most people invest to save-tax, but they ignore the fact that the right investments actually save tax besides allowing the money grow. Taking an expert advice to plan taxes along with the best investment choices help save a lot and let the money grow.

Short-Term Budgeting: With short-term budgeting, one does not focus on the long-term insights and thus, are more prone to unwanted expenses. Experts suggest that an annual budget is effective than a monthly budget, when it comes to saving money. An annual budget does not give cushioning for non-committed expenses. A complete financial plan with all the financial goals of life gives a thorough picture of the priorities in life. Savings and investments could then be dedicated to those life goals.   

                                                                                                                                         By Artha Yantra             
         

NPS#RETIREMENT

The old-age is the phase of life when most people do not have a stable income-source. But a regular income can be generated all through the golden years with a good pension or retirement scheme.

National Pension System (NPS) is one such retirement scheme established by the Indian Government on 1 January 2004, to offer retirement income to all the citizens. Indian citizens aged between 18 and 60 are eligible to open an NPS account. Here are must to know details of NPS.

Key Features Of NPS:

NPS generates income during old-age by offering reasonable market-based returns over the long term. The scheme extends old age security coverage to its subscribers. Its crucial features include:

• Allotment of a unique Permanent Retirement Account Number (PRAN) for every NPS subscriber.
• The PRAN can be used from anywhere to make NPS transactions.
• With PRAN, you can access two personal accounts, which include Tier-I pension account and Tier-II savings account.
• Tier-I pension account is a non-withdrawable account, into which retirement savings can be deposited.
• Tier-II savings account allows voluntary savings facility, from where saving can be withdrawn anytime.

Benefits Of NPS:

Cost-effective: The scheme requires you to make your first contribution while applying for registration. One has to make contributions subject to the following:

• INR 6,000 minimum contribution each year.
• Minimum amount per contribution is INR 500.
• Minimum number of contributions every years is one.

Simplicity: Account can be opened  through the nodal office or online, after which the PRAN number is generated. This single PRAN number can be used to make all the transactions.

Transparency: Through the cost-effective and transparent system, the pension contributions are invested into pension funds. Subscribers will be allowed to know the value of their investments on day-to-day basis.

Regulated: The Pension Fund Regulatory and Development Authority regulates the NPS. Besides transparent investment norms, the regulator monitors and reviews the performance of the fund managers.

Portable: Every employee holds a unique identification number and separate PRAN numbers that are portable. These numbers remain same for the entire life and can be carried even if an employee gets transferred to another office.

Self Allocation: Investments under NPS can be made, based on the investor’s choice or as per the “Auto Choice” option.

Tax-Savings: NPS investments allows tax benefits based on the below criteria

• INR1,50,000 as per section 80CCD(1) – deduction has to be minimum of 10% of gross income or salary.

• Rs.50,000 as per section 80CCD(1b). Thus, investors can avail maximum tax benefit of INR 2 lakhs.

• 10% of basic salary + dearness allowance as per section 80CCD(2).

In conclusion, elevated cost of living, life expectancy and inflation all make retirement planning an essential part of today’s life. Avail any of the pension plans but ensure to analyze if the retirement corpus is enough to lead a retired dignified life. If not, substantiate it with other investments like mutual funds, after seeking an expert advice. Approach Money Farmers for  financial planning and personal finance advice.

                                                                                                                                              By Artha Yantra

HOW MUTUAL FUND WORKS

Investing for your dreams through SIP

Don't diversify beyond point

INFLATION

COST OF DELAY

Have A Look before investing in Debt

Debt fund enhances the overall value of the portfolio, if chosen properly. Debt funds offer variety of products that are based on different time horizon to meet individual investment needs.
Selecting a debt fund is a tougher task then selecting an equity scheme. Below given are some of the important points that are to be kept in mind before making the selection.

Investment time horizon
Investors should first be aware of their future cash flow requirement before making the fund selection. Investors should define the period for which they want to invest.

• Short maturity funds include Liquid, Ultra short term & short term funds.
• Medium maturity funds include corporate bond and credit opportunities fund.
• Long maturity funds consist of Income, Gilt & dynamic bond funds.

Portfolio Indicators
Yield to Maturity (YTM) is the expected yield that the portfolio will generate from the coupon payments if the securities are held till maturity.
Average Maturity is the weighted average maturity of all the securities held in the portfolio. Higher the average maturity, more sensitive is the portfolio to the interest rate movement.
Modified Duration is a measure of sensitivity of the price of a bond to change in interest rates. If modified duration of the portfolio is 3 years and interest rates goes down by 1%, then Net Asset Value (NAV) of the fund will go up by 3 per cent. Higher the modified duration, higher will be the sensitivity of the price for a given change in interest rate.

Allocation to Credit rating
Credit rating indicates the credit risk that the fund assumes. Debt funds tend to invest in securities having varied credit ratings. Portfolio consisting of sovereign & higher rated papers implies lower default risk. Higher the credit rating of the securities in the portfolio, safer will be the investments.

Allocation to different asset classes
Debt funds invests in the various instruments like government bonds, state government bonds, corporate bonds, PSU bonds, treasury bills, cash etc. issued by different entities.
Government bonds are more sensitive to movement in interest rates compared to corporate & PSU bonds. Cash and current asset in the portfolio ensures availability of funds to meet day to day redemptions from the fund.

Market Scenario
See to it where the interest rates are expected to move in the overall economy – upwards or downwards for near term as well as few years down the line.
When interest rate cycle is in an uptrend, it makes sense to invest in short term debt funds, while in a falling interest rate scenario invest in longer duration debt funds.
Other than above, one should also look at the investment objective of the scheme, performance track record over a period of time vis-a vis its benchmark & other fund features like corpus and exit load.

MEET THE BAHUBALIS OF MUTUAL FUND INDUSTRY BY WEALTH CREATION

MEET THE BAHUBALIS OF MUTUAL FUND INDUSTRY BY WEALTH CREATION

Wealth Creation is not a rocket science.

The simple formula which works in wealth creation is –

Start Investing Early + Invest Regularly + Invest Long Term = WEALTH CREATION

Have a look at the powerful mutual fund schemes which have created wealth multifold for their investors in last 2 decades or since inception.

Its always Better Late than Never to do Retirement Planning

Indians are ready for retirement, but haven’t saved enough. Survey, Aegon Retirement Readiness Survey 2015, reveals that approximate 73% of the respondent form the India believed that they will have to support family members, apart from spouse or partner, financially after retirement.

The person aged 35 today and having the monthly expense of Rs 25000/- wanting to retire at age 55 and life expectance of 80 years will require the approx 3.13 Cr rupees only for the retirement considering 8% inflation and 9% rate of return post retirement. His monthly household expense would be Rs 1,16,524/- which is currently Rs 25000/-.

The best time to start investing for your retirement is the day you get your first pay check. But it is always better to start late than never.SIP (Systematic Investment Plan) through the Equity Mutual Fund is the best Investment strategy for investing for the Retirement.

It is very essential to know the right amount of the fund you will require and the monthly investment you are required to do for attaining the peaceful Retirement Life.

Assuming the retirement is 20 Years away
Retirement Corpus Required	Expected Rate of Return
	8%	15%	18%
20000000	INR. 34,925	INR. 15,071	INR. 10,380
30000000	INR. 52,387	INR. 22,606	INR. 15,570
50000000	INR. 87,312	INR. 37,677	INR. 25,950

Create a FREE Account for Online Mutual Fund Investment Now!

SIP has a power to deliver the better return than the traditional Recurring Deposits in a long run. As on 30th June, 2015 the Average return given by SIP in Equity Funds for 15 years of period is 20.24%, while the minimum return was 13.11% which is far higher than the return from the recurring deposit of any bank or post office.

Ø  Have you planned for your retirement enough?

Ø  Do you know what would be your monthly house hold expense at the time of your retirement?

Ø  Do you know the pace at which your expenses will increase post retirement?

Ø  Do you know how much corpus you need to accumulate to live a peaceful retirement Life.

Click Here to know how much retirement corpus you will need and the SIP amount required to achieve that corpus.