Page 101 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) .indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
th
nd
1 Suppose your son /daughter is 3 years old SIP investment at specific interval (say
and you want make provision for education half yearly/yearly) by specific amount or
expenses. You can manage education expenses percentage. For e.g., you can use top up of 10%
up to school level education say up to the age increase per year.
of 18 of the children. However, suppose the
child is to pursue Engineering Degree course 2)Perpetual SIP:
of 4 years after passing his higher secondary This SIP will continue as long as you wish to
and today’s cost for this 4-year course is say invest having no end date.
Rs.6lakh then assuming 6% inflation this cost
after 15 years will be aprox. Rs.15 to 16 lakh, to 3)Flexible SIP:
accumulate this amount in next 15 years you In this SIP you can change the amount
need to have SIP of Rs.2500 per month in equity according to your preference.
mutual fund for next 15 years this accumulates
almost required amount at the beginning of his SIP can be paused for 3 months to enjoy this
facility you need to submit pause request either
education.
offline or online and the expiry of this period
2) Suppose you are self-employed person of age SIP starts again. If you do not pay 3 successive
35 having monthly income of average Rs.one SIP instalments your SIP stands cancelled but
lakh and your current house hold expenses are there is no penalty you can redeem all the units
Rs.50000/pm and you want to do retirement at the then NAV.
planning which will take care expenses after
retirement maintaining your current life You can stop your SIP and redeem partially or
style. Assuming that you will be retiring at fully as per your choice at the time of cancelling
SIP or you can stop SIP also redeem when you
the age of 65 and likely to survive till the age
of 80 and inflation all throughout will be 6%. want at the then NAV.
Further it is assumed that you are investing in Right duration for SIP depends upon your
equity mutual fund through mutual fund and financial goal and time to achieve the said goal.
post retirement in hybrid mutual fund having
equity exposure of about 40%, equity returns In short, we can say SIP is best suited
investment option for your financial planning
are assumed at 12% and hybrid returns are
assumed at 10%. Required retirement corpus with investment options to choose suitable
will be Rs.4 crore approximately. If he invests to your risk appetite. It is easy to invest with
in equity mutual fund with monthly SIP of much needed flexibility. Online SIP calculators
Rs.10000 he will in position to built the required will help you know the amount you can receive
after specific period if you invest certain
corpus of Rs.4 crore by the time he retires.
amount with reasonable return expectations,
3) As regards contingency requirement he can for e.g., if you are investing Rs.20000 per month
withdraw required amount only from his SIP for ten years in equity MF and expected returns
investment without discontinuing the SIP. are 14%then the expected corpus would be Rs.
Types of SIPs: 52 lakh as against the total investment of Rs.24
lakh.
1)Set -up or Top- up SIP:
A set-up or top-up SIP enables you to increase F I B
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