Mutual Fund Profit: If you are depositing money for retirement plan, then you can deposit good money through mutual funds apart from through EPF or PPF.
There is no maximum investment limit and you can decide the amount to be deposited every month as per your convenience. SIP investor gets information about money management which is useful in retirement.
If you go to take any pension plan, then the minimum and maximum amount of investment is fixed in it. This is not the case with mutual funds. For retirement, you can easily start investing in SIP of mutual funds even with less money. In SIP, every month a certain amount has to be deposited in a fund.
But people do not invest money in it because of the risk. However, if you build a portfolio of different funds, the risk is reduced to a great extent and the quantum of returns increases. Investing 20-30 years in mutual funds and later investing in it through SIP can add a substantial amount for retirement. In view of this, mutual funds will be more useful than EPF or PPF.
Everyone earns money in his life, but remains in tension about retirement plan. Everyone wants that at the time of retirement, they do not have any financial problem and keep getting money every month on time. First of all, the option of EPF or PPF comes to mind first, money remains secure in it, but the returns are not good. But, if you invest in mutual funds for a long time, you can earn good money.
Let’s say you are 30 years old and you started a monthly SIP with Rs 10,000. You deposited money for 30 years according to 12 percent return. When you turn 60, you will have a deposit of Rs 3.50 crore. Hardly any plan will be able to give such a huge return with a light risk. Apart from the returns through SIP, there are many other big benefits.
