MUTUAL FUND SIP STRATEGY: HOW CAN YOU BUILD RS 2 LAKH MONTHLY PENSION BY 45 WITH RS 11000 MONTHLY SIP?
Mutual fund SIP strategy: While mutual funds are often considered a means of building a sizeable corpus, they are much more than that. With proper planning, they can even provide a cushion for old age. These funds could easily generate lakhs of rupees per month. Here's how one could generate Rs 2 lakh monthly pension by 45 with Rs 11000 monthly SIP. Also, explore mutual fund schemes that have delivered average returns of over 20 per cent CAGR for the past 10 years.
SIP for early retirement: Mutual Fund SIP Calculation
- Investment amount: Rs 11,000 monthly
- Investment period: 20 years
- Annualised return: 12 per cent
- Staring age: 25
- Annualised return: 12 per cent
- Step-up SIP: 10% every year
SIP investment plan 2026: How to build a fund of Rs 2 cr?
If you start investing Rs 11,000 monthly in a mutual fund scheme at the age of 25, and opt for a step-up SIP, that is, increase your investment by 10 per cent every year, then if this investment yields an average return of 12 per cent per year, you could accumulate a corpus of over Rs 2 crore.
Mutual fund SIP strategy: How can you generate Rs 2 lakh monthly?
After 45 years, once these mutual fund schemes have grown into a corpus of Rs 2 crore, you can start a Systematic Withdrawal Plan (SWP). By withdrawing Rs 2 lakh every month under the SWP, your corpus can remain around Rs 2 crore, assuming a 12 per cent annual return, while providing you with a steady monthly income of Rs 2 lakh.
5 Mutual funds with strong returns over the last 20 years
| Nippon India Pharma Fund | Average annual return of 17.42% over 20 years |
| Nippon India Banking and Financial Services Fund | Average annual return of 15.78% over 20 years |
| SBI Consumption Opportunities Fund | Average annual return of 15.33% over 20 years |
| Quant Small Cap Fund | Average annual return of 15.26% over 20 years |
| Nippon India Growth Mid Cap Fund | Average annual return of 15.19% over 20 years |
What is Systematic Withdrawal Plan?
A Systematic Withdrawal Plan (SWP) is a mutual fund facility allowing investors to withdraw a fixed or variable amount at regular intervals (monthly, quarterly, annually). It acts as a reverse of a SIP, providing a steady income stream while the remaining investment continues to grow. It is ideal for retirees or those seeking regular cash flow, often offering higher tax efficiency compared to traditional interest-bearing options.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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2026-05-06T12:42:36Z
