Invest In Tax Saving Mutual Funds Online
We have seen India change over the last two decades, notably there has been a change in the lifestyle of the working population. Purchasing power has increased considerably and so have the expenses.
An improved lifestyle and better medical facilities have led to increase in the lifespan of the average Indian. In the past, a salaried person would retire at 60 and live up to the age of 67; however, now the lifespan of an individual post-retirement has increased by at least 20 years. This implies that an individual needs to have sufficient funds to be able to lead a comfortable life once he or she stops working.
If a person spends Rs 25,000/- a month today, assuming an inflation of 7%, his expenses after 25 years would increase to Rs 1,36,000/- a month. Add to this medical expenses, which increase with age and occasional expenses such as gifts it could actually exceed Rs 1,50,000 a month.
Most private sector companies do not provide pension. Additionally, the rising trend of nuclear families, increasing cost of healthcare, inflation etc. make it necessary for an individual to plan for retirement.
The objective is to have a regular flow of money after retirement that will enable one to manage the increased expenses without compromising their lifestyle.
Today, consumers have access to products which enable them to plan for their retirement. While the awareness for retirement planning is increasing, most of us delay investing for it. Starting at an early age can significantly enhance realisation of an individual's dream to achieve financial independence in the golden yeaRs
When is the right time for me to start retirement planning?
Well, in case of retirement planning it is said 'the earlier the better', however, it is never too late either. Starting early gives you the benefit of time, which coupled with the power of compounding, enables you to create a sizeable corpus that can enable an individual to take care of expenses after retirement.
Though the amount required to be invested is more if you delay your planning, the key word is 'regular investment'. It is only through regular disciplined investments that you can put aside a corpus that will generate enough income to enable you to live your life comfortably after retirement.
How do I plan for my retirement?
Retirement planning can be done in 3 simple steps:
Step 1: How do I calculate my expenses post retirement?
Take into account your current expenses and factor in aspects like inflation, increased medical costs, vacations, gifts for family etc. You will then arrive at an amount that you will require for living comfortably once you have retired. You need to keep in mind that inflation will cause your expenses to increase (even if you are spending on the same items). One can eliminate costs like children's education and rent, if you own a home.
Step 2: What will be the savings pool I need to build?
Once you have an idea of your expenses, you can accordingly establish the quantum of amount (corpus) required to be built the amount that you need for meeting the expenses. This savings pool will be created taking into consideration the inflation factor.
Step 3: How much do I need to save now?
Depending on your financial status, determine the funds which can be put aside for building the desired retirement corpus. Start saving now so that you have time on your side and can enjoy the power of compounding.
For example, if a 35 year old person wants Rs 50,000 every month for meeting expenses after retirement, he needs to start planning now. A corpus of Rs 75,00,000 will be required to generate the desired amount. For this purpose, one needs to invest Rs 10,000 every month in a retirement plan.
How should I choose a retirement plan?
Studying the features and the charge structure of a retirement plan is important. Ideally, selecting a plan which has a low charge structure will enable you to contribute more towards your investment.
A good retirement plan would:
• Provide returns that beat inflation
• Give you the flexibility to choose your investment strategy as per your risk taking ability
• Protect your capital from market fluctuations
• Inculcate a regular saving habit to ensure the corpus is built in an uninterrupted manner
| If you were to start saving at the age of | You will need to save money for (in yrs) | The amount you will need to invest p.a. | Your corpus at the age of 60 will be | Pension you receive for self, then wife after which corpus is returned to children/ beneficiary | ||||||
| 35 | 25 | 1 lakh | 67 lakhs | 4.5 lakh p.a | ||||||
| 50 | 10 | 5 lakh | 72 lakhs | 4.8 lakh p.a | ||||||
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax Plan Invest Online
- HDFC TaxSaver Invest Online
- DSP BlackRock Tax Saver Fund Invest Online
- Reliance Tax Saver (ELSS) Fund Invest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) Fund Invest Online
- SBI Magnum Tax Gain Scheme 1993 Invest Online
- Sundaram Tax Saver Invest Online
- Edelweiss ELSS Invest Online
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFunds Invest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
