Plan your retirement with mutual fund investment

January 31, 2022

Plan your retirement with mutual fund investment

While deciding your life goals, have you ever kept retirement planning as the topmost priority? If you start saving a portion of your income for the second innings of your life, then this will help you financially in the long run. You can look at planning your retirement by investing in mutual funds.

There are many investment avenues in the market that allow you to accomplish certain life goals. You may take into consideration your child’s education, international trip, term insurance, etc. while preparing your financial plan. But the most important goal people always tend to forget is planning for retirement. That phase of life when you stop working and wish to live a happy and peaceful life with no financial troubles. Is it just possible with the help of savings? The answer is no.

You need to think beyond the passive accumulation of money and start planning your retirement with mutual fund investments. Before that, let’s understand why it is important to do retirement planning:

  • One of the main reasons is inflation, where the value of your savings decreases with the rise in the price of goods and services.

When it comes to starting a retirement plan, the first thing you need to comprehend is how much money you would require post retiring from your job. To determine the corpus, you can use the ICICI Bank’s online retirement calculator.

Understanding the role of mutual funds in retirement planning:

Investing in mutual funds is one of the ways that will help to plan a financially peaceful retirement. It can help to beat inflation. With their ease of investing and professional management, mutual funds are a good investment instrument to meet your financial goals. One of the important advantages of a mutual fund is that it allows one to capture the returns of an entire segment of the market without having to buy and sell individual stocks or bonds. . You get exposure to different assets and financial instruments that can help you earn attractive returns in the long run. Thus, helping you accumulate wealth in an affordable manner.

A Systematic Investment Plan or SIP as its popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. To start with the investment, you can opt for a Systematic Investment Plan (SIP) that will allow you to save a fixed monthly amount as per your requirement. By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long-term due to average costing and power of compounding.

You get the flexibility to invest in different mutual fund schemes as per your objective and risk profile. Compared to traditional investments, it can potentially help you build a sizeable retirement corpus. So, are you ready to start your retirement planning?

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