You're 25 and want ₹1 crore by retirement. This dream will come true if you invest this way.

Investment Tips: Start investing wisely at 25. A target of ₹1 crore by retirement can be easily achieved through SIPs and balanced funds. Learn how.

Investment Tips: Everyone wants a good corpus after retirement, ensuring a comfortable life. Therefore, people plan ahead. If you're 25 and want to accumulate ₹1 crore by retirement, you need to plan well. The earlier you start investing, the greater the benefits.

Because the effect of compounding increases over time, at 25, you have a long investment horizon. Even small investments can become substantial. All you need is proper planning. Let's explore which investment options can help you fulfill your dream of becoming a millionaire by retirement.

You can become a millionaire through SIPs.

Many people today use SIPs. It has become a new investment method. If you start a SIP of just Rs 5,000 every month and earn an average annual return of 12%, your corpus could grow to around Rs 1.15 crore in 35 years. This is the magic of compounding.

The special feature of SIPs is that they offset the impact of market fluctuations over time. The earlier you start, the more your corpus will compound and grow. There are also tax-saving options, such as ELSS funds, which are eligible for deductions under Section 80C. This means that SIPs not only provide growth but also provide tax relief.

Try these methods

If your goal is to accumulate Rs 1 crore by retirement, it's not necessary to rely solely on equity funds. It's wise to spread your money across both equity and debt. For example, invest 70% of your total corpus, or approximately ₹35 lakh, in equity mutual funds and the remaining 30%, or approximately ₹15 lakh, in PPF or debt funds. This will ensure your portfolio remains stable even during market downturns and secures fixed returns.

PPF has a 15-year lock-in period and offers guaranteed interest. Equity funds, on the other hand, offer returns that exceed inflation over the long term. Rebalance your investments every few years to keep risk under control and easily achieve your target of ₹1 crore by retirement.