Sunday 6 January 2019

How and Why to Start Saving for Retirement with Reliance Retirement Fund Now?


Your first paycheck may be meant for buying that shoes or dress which you were looking from months, or endless parties on the weekend as well as getting as many pictures for perfect #OOTD for Instagram. No one thinks of saving it or investing it for the retirement purpose this early, right? We hate to kill your buzz, but most of our experts say that everyone should think about it. Because the time is by your side and retirement planning is that thing that you should do ASAP. Guess what, if you plan your retirement now with the Wealth Creation Plan of Reliance Retirement Fund, you can make all your forlorn dreams into reality.

To be financially secure and pursue dreams at the same time, you need to start saving early. We all know that adulting is hard, but here MySIPonline has bought you a few tips that help you to live the best life sooner than you think.

How to Save?

We always focus on investment through SIP mode. It has one of the biggest plus points which investors need not to time the market. Hence, investing recurrently will make sure that you are fully invested at various highs and lows and this will make the most of the opportunity that is hard to predict in advance. SIP investment offers the advantage of compounding, which Albert Einstein called the 8th wonder of the world. It’s because with every passing month of investment the interest will generate and also accumulate earnings from the previous interest.

So, if you invest the amount of Rs 5,000 every month for 25 years in Reliance Retirement Fund and expect the interest of 15%, you will have Rs. 1.65 Crore at the end. And if you step up the SIPs by 10% every year, you can take the amount of Rs 2.56 Crore to your home at the end of 25 years.

Why Reliance Retirement Fund?

The fund which has been meant explicitly for generating retirement corpus offers two investment portfolios to investors. It has wealth creation and income generation plans, where the former invest 80% of its corpus in equities while the later invest its 80% of its corpus in debt plans. The best part about these two is that investors can choose to transfer from one plan to another at any time of investment under the auto transfer facility.

Reliance Retirement Fund is an open-ended scheme, with a lock-in period of 5 years or till retirement age, whichever is earlier. So, investors who redeem their units before attaining the age of 60 (retirement age), they have exit load of 15%. This policy has been adopted by the fund to make investors stay invested in the long run. Besides this, the fund also offers deduction to investors under Section 80C of the Income Tax Act, 1961, up to Rs 1.50 Lakh.

So, if you are investing in Reliance Retirement Fund- Wealth Creation Plan, remember that slow and steady wins the race. You will reach your goals if you invest small amount regularly but stay invested for a long run. For investing in the fund, register yourself at MySIPonline. If you face any issue in investing, you can connect with our experts via call or email. You can also post any of your query related to the regular plan of the fund here, and our support team will reach you soon. 

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