Financial Advisor at Lici

18/10/2023

http://mydc.in/?a=7407166675-12

I am a Life Insurance Consultant working with Indias most trusted brand Life Insurance Corporation of IndiaLIC is Indias Largest & Oldest Insurance Company which Sold more than 30 Crore policies.The approximate asset value of LIC of India is ₹ 42,30,616 Crore.

01/06/2019

27/12/2018

Public Provident Fund vs Mutual Fund SIP: What Rs 200 a day may become in 15, 20, 25, 30 years - Surprising numbers here

Public Provident Fund vs Mutual Fund SIP: What Rs 200 a day may become in 15, 20, 25, 30 years - Surprising numbers here

Public Provident Fund vs Mutual Fund SIP: Rs 200 a day can help you save in crores for retirement.

Public Provident Fund vs Mutual Fund SIP: Rs 200 a day can help you save in crores for retirement. Rs 200 may seem a small amount. But if you save this amount, say at the age of 25, for investment in popular financial instruments like Public Provident Fund (PPF) and Mutual Fund SIP for a longer period of time, you may be able to get richer by over a crore of rupees. Both instruments come with different terms and conditions.

While PPF is backed by the government and curently offers 8% interest along with guaranteed income tax exemption on the deposit as well as the withdrawal amount. Mutual fund SIPs are affected by market trends but one can expect a return of 12% per annum at a conservative estimate in the long run. Take a look at how saving Rs 200 a day for a monthly investment of Rs 6000 or an annual investment of Rs 72,000 in the PPF will give you:

The following chart explains what investing Rs 72,000 a year in PPF can give you. Remember, PPF account comes with a lock-in period of 15 years, which can be extended further in blocks of 5-years each. Calculating at the current interest rate of 8%, which is compounded annually, your investment of Rs 72,000 will turn into Rs 2,111,338 in 15 years. The amount will grow to Rs 3558433, Rs 5684690, Rs 8808861, Rs 13399328 in 20, 25, 30 and 35 years respectively.

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PPF calculation chart

Yr Opening Balance Yearly Amt Interest Closing Bal
1 0 72,000 5,760 77,760
2 77,760 72,000 11,980 161,740
3 161,740 72,000 18,700 252,439
4 252,439 72,000 25,955 350,394
5 350,394 72,000 33,791 456,185
6 456,185 72,000 42,254 570,439
7 570,439 72,000 51,395 693,834
8 693,834 72,000 61,266 827,100
9 827,100 72,000 71,928 971,028
10 971,028 72,000 83,442 1,126,470
11 1,126,470 72,000 95,877 1,294,347
12 1,294,347 72,000 109,307 1,475,654
13 1,475,654 72,000 123,812 1,671,466
14 1,671,466 72,000 139,477 1,882,943
15 1,882,943 72,000 156,395 2,111,338
16 2111338 72000 174667 2358005
17 2358005 72000 194400 2624405
18 2624405 72000 215712 2912117
19 2912117 72000 238729 3222846
20 3222846 72000 263587 3558433
21 3558433 72000 290434 3920867
22 3920867 72000 319429 4312296
23 4312296 72000 350743 4735039
24 4735039 72000 384563 5191602
25 5191602 72000 421088 5684690
26 5684690 72000 460535 6217225
27 6217225 72000 503130 6792363
28 6792363 72000 549149 7413513
29 7413513 72000 598840 8084353
30 8084353 72000 652508 8808861
31 8808861 72000 719468 9591329
32 9591329 72000 773066 10436425
33 10436425 72000 840674 11349099
34 11349099 72000 913687 12334786
35 12334786 72000 992542 13399328
Mutual Fund SIP investment returns:

At a conservative return of 12%, investing Rs 6000/month (which is Rs 200 a day), you may get Rs 30,27,456 in 15 years. The returns in 20, 25, 30 and 35 years may likely be around Rs 59,94,888, Rs 1,13,85,811, Rs 2,11,79,483 and Rs 3,89,71,615 respectively. (Calulation done via online SIP calculator of HDFC Mutual Fund.)

*Source: HDFC Mutual Fund

So you see, with Rs 200 a day, you may be able to accumulate up to Rs 3 crore in 35 years. However, remember that SIPs are subject to market risks. So you need to monitor you investment. It is advised to not be greedy with the mutual funds. Invest your money to meet specific goals. Once, your goal is over, you should ideally pull out, or start a new SIP, to avoid risks. And, in any case, you should be always vigilant about how your fund is performing.
For Details contact:
Authorised Mutual Fund Distributor
Ramesh Kundu
9233119719

05/12/2018

*Secure the financial future of your family with a smart SIP*

The increasing cost of living is shrinking our wallets. Cost of many items of regular use has increased 5 to 7 times in the last 20 years; our income has not increased in the same proportion. As a result we are saving less and less on proportional and inflation adjusted basis. In the long term this can result in us falling short of our goals. Historically, we saved / invested what was left after spending on day to day needs, but it is time you change the paradigm. Do not save what is left after spending, but spend what is left after investing.

*Multiple financial priorities in different stages of life*

While most of us are all consumed in meeting our day to day needs, financial liabilities (home loan EMIs) and our lifestyle aspirations, you also have to plan for multiple priorities in different stages of life. In the first 25 years of our lives, the most important priorities are education, including professional qualification. For the duration of our working years, spanning 30 to 35 years, our focus is employment, our family, home and children’s education. When you are at the peak of your career, around say 55 years of age, your focus is on your children’s higher education, children’s marriage and your impending retirement. These goals will not be met magically, do not wait for windfall gains because it is quite rare – you need to save and invest for each of these goals from your regular monthly savings.

Factor in inflation, it may seem a tall order but if you commit early, have a plan, be disciplined and intelligent about financial / investment decisions, then it is possible for you to meet all your goals and secure happiness for your family, at least from a financial perspective. We regularly have SIP related content, almost ad nauseam for maybe some of our dear readers, but given the challenges of financial planning in an inflationary environment, our objective is to instill in our readers a systematic and disciplined approach to savings and investment. The known principles of SIP namely, early start, regular investing and right investing are critical in meeting multiple priorities in different stages of life.

*SIP Karo Tension Free Raho *
* Ramesh Financial Advisor*
7407166675