From Rs 2,500 Monthly SIP to Rs 3 cr Corpus: How long-term investment can bring magical results from your SIP investment; see calculations to know that

From Rs 2,500 monthly SIP investment to Rs 3 cr corpus: What are the excuses of people for not investing? They say my monthly income is meagre; there is hardly anything left at the end of the month that I can invest; I want to invest, but what if I lose my job and the bank penalises me for missing monthly investment instalments.

If the income is meagre, one can start with a small monthly investment amount and can gradually build up as income increases; the best way to invest is to opt for auto mode, where your investment amount is deducted from your salary early in the month.

There are many investment options where one can stop their investing if they lose a job and their monthly income stops and restart when they get a job.

One can build a sizeable retirement corpus only if investing is a habit and they do it for the long term consistently.

In this write-up, step by step, we will show how a monthly mutual fund SIP investment of Rs 2,500 can grow to approximately Rs 3 crore in the long term.  

SIP investment conditions

Here, we will show Rs 2,500 monthly SIP investment for 40 years, which is also the maximum duration of SIP investment offered by most mutual fund houses in their schemes.

The annualised return will be 12 per cent. We will show the growth of investment in 5, 10, 15, 20, 25, 30, 35, and 40 years.

Retirement corpus from Rs 2,500 monthly SIP investment for 5 years

The invested amount in 5 years will be Rs 1,50,000, estimated capital gains will be Rs 56,216, estimated amount will be Rs 2,06,216.

Retirement corpus from Rs 2,500 monthly SIP investment for 10 years

The invested amount will be Rs 3,00,000, estimated capital gains will be Rs 2,80,848, and the estimated return will be Rs 5,80,848.

Retirement corpus from Rs 2,500 monthly SIP investment for 15 years

During that period, the invested amount will be Rs 4,50,000, estimated capital gains will be Rs 8,11,440, and the estimated amount will be Rs 12,61,440.

Retirement corpus from Rs 2,500 monthly SIP investment for 20 years

The invested amount in 20 years will be Rs 6,00,000, estimated capital gains will be Rs 18,97,870, and the estimated amount will be Rs 24,97,870.

So, we see that at half stage, the estimated amount on a Rs 6,00,000 investment is Rs 24,97,870. In the next calculations, see the impact of the power of compounding. 

Retirement corpus from Rs 2,500 monthly SIP investment for 25 years

The investment will be Rs 7,50,000, estimated capital gains will be Rs 39,94,088, and the estimated amount will be Rs 47,44,088.

Retirement corpus from Rs 2,500 monthly SIP investment for 30 years

Investment in 30 years will be Rs 9,00,000, estimated capital gains will be Rs 79,24,784, and the expected amount will be Rs 88,24,784.

Retirement corpus from Rs 2,500 monthly SIP investment for 35 years

The investment will be Rs 10,50,000, expected return will be Rs 1,51,88,173, and the expected amount will be Rs 1,62,38,173.

Retirement corpus from Rs 2,500 monthly SIP investment for 40 years

The invested amount in 40 years will be Rs 12,00,000, estimated capital gains will be Rs 2,85,06,051, and the estimated amount will be Rs 2,97,06,051.

(Disclaimer: This is not investment advice. Do your own due diligence or consul an expert for retirement planning.)