You will become 'rich' at rocket speed, but how to create a retirement fund of ₹ 1 crore? This is the smartest way for those who start at the age of 30 or 40

In today's time, rising inflation is directly affecting people's savings. The retirement fund of ₹ 1 crore, which seems very big today, may not prove to be enough to meet your needs in the future.

With rising inflation eating up everyone's savings, a retirement fund of ₹ 1 crore may not last as long as you think in the future. Yes, if you withdraw 6% annually for tomorrow, it can give you only ₹ 50,000 per month, which will be for about 20 years. Yes, now in urban India, this is hardly going to be enough for post-retirement expenses.

If you want to make ₹1 crore in 15 years, you need to invest around ₹20,000 every month at 12% annual return. Start investing with whatever amount you can afford, even if it is ₹5,000 and keep increasing your SIP (Systematic Investment Plan) every year. The magic of compounding will do its work.

You always need to balance growth and safety in a smart portfolio. For long-term goals like retirement, a 70:30 ratio between equity and debt can work well. To stay diversified, consider investing in aggressive hybrid mutual funds, NPS (National Pension System) and even index funds.

In today's time, do not depend only on EPF (Employees Provident Fund) or Fixed Deposit. You should immediately include NPS (for additional tax savings), PPF (Public Provident Fund - for guaranteed returns), and long-term equity mutual funds in your portfolio. Avoid traditional plans like ULIP (Unit Linked Insurance Plan) or Endowment Policy until you understand them completely.

Let us tell you that as you come closer to retirement, you should gradually move from equity to debt to keep your profits safe. Rebalancing your portfolio once a year keeps the risk under control and ensures that your asset allocation is on the right track.

Always remember that frequent withdrawals, poor insurance cover, or ignoring medical inflation can harm your future. Have a separate health cover, create an emergency fund, and never dip into your retirement savings for short-term goals. (Note: This article is for information purposes only and should not be construed as investment advice in any way. Recommend consulting financial advisors for investment.