fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Retirement Planning » Retirement Calculator

Retirement Calculator: Evaluate and Invest

Updated on September 27, 2020 , 771 views

retirement calculator is a tool for those who are eager to know about the corpus required post retirement to maintain a certain standard of living. Retirement calculator is considered as an essential element when Planning for retirement. It helps you to identify the estimated amount that you need to save for your retirement based on your current financial situations. Therefore, we take you through a very simple retirement calculator that will help you to evaluate the corpus needed when you retire.

Understanding Retirement Calculator

While using a retirement calculator, you would need to enter certain variables, such as-

  • Your current age
  • Your current monthly expenses
  • Expected Inflation rate (annual) for the years to come
  • Long-term growth rate on investments

All these variables when fed into the calculator would end up giving the amount that you need to invest monthly for your retirement to maintain the standard of living. (i.e. your current monthly living expenses adjusted for inflation).

Retirement Calculator: Evaluation Process

1. Calculating your Current Monthly Expenses

The first thing that you need to do here is, calculate your monthly expenses like household expenses, utility expenses, transportation cost, and other lifestyle expenses. Other than this, you should have a rough idea about the minimum amount that you require monthly for miscellaneous expenses. The basic assumption here is that these expenses adjusted for inflation should suffice in the future to lead a comfortable post retired life.

*To illustrate- *

  • Household expenses – INR 10,000
  • Transportation expenses- INR 2,000
  • Utility expenses-** INR 3,000**
  • Other lifestyle expenses (movies, dining, etc.) - INR 3,000
  • Miscellaneous expense- INR 2000

Total Monthly Expenses- INR 20,000

Know Your Monthly SIP Amount

   
My Goal Amount:
Goal Tenure:
Years
Expected Annual Returns:
%
Total investment required is ₹6,659/month for 20 Years
to achieve ₹10,000,000
Invest Now

Retirement-calculator

2. Understand Inflation Rate for Coming Years

This is the average annual inflation rate that you expect in coming years till you retire. According to various market sources, the average inflation can be taken to be around 4-5% p.a. in the coming years. However, one can enter their own assumption also.

Retirement-planning-inflation-rate

3. Long Term Growth Rate of Investments

This is long-term growth rate that you expect on your investments. Though the long-term return from the equity market has been 8-15% historically, according to market sources, going forward one can expect around 8-15% p.a. in the long run. If you have sound knowledge about the markets, you can enter your own assumptions on the growth rate.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

4. Investment Evaluation

Now comes the interesting part where you get the desired amount that you need to invest monthly. Taking the above variables into consideration, you will get the desired corpus that you need to save monthly till you get retired. Here the estimated age for retirement is considered as 60 years (refer to the image below).

Investment-evaluation-based-on-all-the-variables-entered

5. Total Corpus

By this, we mean how much corpus will be accumulated when you invest for 36 years, meaning if you start Investing at the age of 24 till 60 years of age. To reach the desired corpus, you need to make a monthly investment. According to the aforementioned figures, the total investment required every month is INR 10,143 for 36 years. As indicated, the estimated total corpus will depend on your current age, current monthly expenses, inflation and the growth rate on investment expected over the years.

Total-corpus-till-60-years

Conclusion- People who are planning for their retirement can use this calculator, through which you can easily estimate your retirement corpus. It will help you calculate approximately the amount needed for retirement and hence, you can plan your investment accordingly!

Top Funds for 2020

*Best funds based on 5 year performance.

1. DSP BlackRock World Gold Fund

"The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of MLIIF - WGF. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or units of money market/liquid schemes of DSP Merrill Lynch Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized."

DSP BlackRock World Gold Fund is a Equity - Global fund was launched on 14 Sep 07. It is a fund with High risk and has given a CAGR/Annualized return of 5.6% since its launch.  Ranked 11 in Global category.  Return for 2019 was 35.1% , 2018 was -10.7% and 2017 was -4% .

Below is the key information for DSP BlackRock World Gold Fund

DSP BlackRock World Gold Fund
Growth
Launch Date 14 Sep 07
NAV (28 Sep 20) ₹20.2681 ↑ 0.08   (0.39 %)
Net Assets (Cr) ₹830 on 31 Aug 20
Category Equity - Global
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk High
Expense Ratio 1.67
Sharpe Ratio 0.92
Information Ratio -0.9
Alpha Ratio -2.22
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹17,384
31 Aug 17₹15,389
31 Aug 18₹12,302
31 Aug 19₹18,221
31 Aug 20₹26,805

DSP BlackRock World Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520
Invest Now

Returns for DSP BlackRock World Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Sep 20

DurationReturns
1 Month -6.6%
3 Month 9.3%
6 Month 54.7%
1 Year 45%
3 Year 17.6%
5 Year 19.9%
10 Year
15 Year
Since launch 5.6%
Historical performance (Yearly) on absolute basis
YearReturns
2019 35.1%
2018 -10.7%
2017 -4%
2016 52.7%
2015 -18.5%
2014 -3%
2013 -41.5%
2012 -5.8%
2011 -2.6%
2010 29%
Fund Manager information for DSP BlackRock World Gold Fund
NameSinceTenure
Jay Kothari1 Mar 137.51 Yr.

Data below for DSP BlackRock World Gold Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Basic Materials94.54%
Asset Allocation
Asset ClassValue
Cash3.48%
Equity95.65%
Debt0.01%
Other0.87%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
BGF World Gold I2
Investment Fund | -
97%₹807 Cr1,982,553
↑ 186,366
Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -
3%₹29 Cr
Net Receivables/Payables
Net Current Assets | -
1%-₹5 Cr

2. Franklin India Feeder - Franklin U S Opportunities Fund

The Fund seeks to provide capital appreciation by investing predominantly in units of Franklin U. S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America.

Franklin India Feeder - Franklin U S Opportunities Fund is a Equity - Global fund was launched on 6 Feb 12. It is a fund with High risk and has given a CAGR/Annualized return of 19.2% since its launch.  Ranked 6 in Global category.  Return for 2019 was 34.2% , 2018 was 6.5% and 2017 was 18.1% .

Below is the key information for Franklin India Feeder - Franklin U S Opportunities Fund

Franklin India Feeder - Franklin U S Opportunities Fund
Growth
Launch Date 6 Feb 12
NAV (28 Sep 20) ₹45.5279 ↑ 0.68   (1.51 %)
Net Assets (Cr) ₹2,259 on 31 Aug 20
Category Equity - Global
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk High
Expense Ratio 1.56
Sharpe Ratio 1.51
Information Ratio -0.25
Alpha Ratio -3.63
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-3 Years (1%),3 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹9,887
31 Aug 17₹11,228
31 Aug 18₹15,345
31 Aug 19₹15,921
31 Aug 20₹22,725

Franklin India Feeder - Franklin U S Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹481,656.
Net Profit of ₹181,656
Invest Now

Returns for Franklin India Feeder - Franklin U S Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Sep 20

DurationReturns
1 Month -2.5%
3 Month 10%
6 Month 46%
1 Year 45.1%
3 Year 24.6%
5 Year 18.8%
10 Year
15 Year
Since launch 19.2%
Historical performance (Yearly) on absolute basis
YearReturns
2019 34.2%
2018 6.5%
2017 18.1%
2016 -0.8%
2015 8.8%
2014 8.4%
2013 55.2%
2012
2011
2010
Fund Manager information for Franklin India Feeder - Franklin U S Opportunities Fund
NameSinceTenure
Mayank Bukrediwala24 Aug 200.02 Yr.

Data below for Franklin India Feeder - Franklin U S Opportunities Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Technology26.46%
Health Care16.8%
Financial Services14.24%
Consumer Cyclical11.74%
Communication Services8.36%
Real Estate6.07%
Industrials5.94%
Consumer Defensive2.19%
Basic Materials1.05%
Asset Allocation
Asset ClassValue
Cash3.38%
Equity93.08%
Other3.54%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Franklin US Opportunities I(acc)USD
Investment Fund | -
100%₹2,255 Cr4,520,305
↑ 159,742
Call, Cash & Other Assets
Receivables | -
0%₹5 Cr

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
POST A COMMENT