Power of Rs 4,000 SIP: Is Rs 3 crore corpus possible with Rs 4,000 monthly investment? Understand calculations
Even a small amount can make a big difference. By investing just Rs 4,000 every month, one could build a retirement fund of Rs 3 crore. Let’s learn how starting early with a mutual fund systematic investment plan (SIP) can help you achieve your target corpus.
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At a young age, retirement planning is usually the last thing on our minds. But as we get older, we understand the importance of saving and investing. But the challenge is that as we age, sources of income and job opportunities may decrease, and risk factors may increase. On the other hand, when we’re young, we have time and the ability to take more risks. That’s why starting early with just Rs 4,000 monthly investment in a mutual fund SIP can help you build a retirement fund of Rs 3 crore. Let’s understand how.
Read more: Power of Rs 10,000 SIP: Can one achieve Rs 6 crore corpus with Rs 10,000 monthly investment?
What is SIP in mutual fund?
A systematic investment plan (SIP) is a process of investing in mutual funds by regularly contributing a fixed amount of money at predetermined intervals.
How does SIP work in mutual funds?
SIP works like a recurring investment, where the amount is auto-debited from your bank account and invested in the mutual fund of your choice.
SIP calculations
Target corpus: Rs 3 crore
Monthly investment: Rs 4,000
Annualised return: 12 per cent
How long it will take to build Rs 3 crore with Rs 4,000 monthly SIP?
It will approximately take 37 years to achieve the target of Rs 3 crore.
What will be your corpus in 10 years with Rs 4,000 monthly SIP?
The estimated invested amount will be Rs 4,80,000. The estimated capital gains will be Rs 4,49,356, and the estimated retirement corpus will be Rs 9,29,356.
What will be your corpus in 20 years with Rs 4,000 monthly SIP?
The invested amount will be Rs 9,60,000. The estimated capital gains will be Rs 30,36,592, and the estimated retirement corpus will be Rs 39,96,592.
What will be your corpus in 30 years with Rs 4,000 monthly SIP?
The invested amount will be Rs 14,40,000. The estimated capital gains will be Rs 1,26,79,655, and the estimated retirement corpus will be Rs 1,41,19,655.
What will be your corpus in 37 years with Rs 4,000 monthly SIP?
The invested amount will be Rs 17,76,000. The estimated capital gains will be Rs 3,13,22,046, and the estimated retirement corpus will be Rs 3,30,98,046.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
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