Plan Your Retirement Wisely: Want Rs 5 crore corpus in 20, 25 or 30 years? Know what can be your daily, monthly or yearly SIP investments to achieve that?
Retirement Planning: The benefit of starting to invest early and doing it for a long duration is that one can build a sizeable retirement corpus even if their investment amount is small.
Power of Compounding: Compound growth of a mutual fund SIP investment plays a key role in building a large corpus. It helps investment grow faster as it gets older.
The key is to start investing early and continue it for a long term.
Other important components are to have a clear retirement corpus goal for a certain time frame and get the desired returns to achieve it.
If one has a longer investment duration with a smaller monthly SIP investment, they can create a larger corpus compared to a person whose monthly investment amount is larger and the duration is shorter.
See how one can create a larger retirement corpus with a smaller amount and what the daily, monthly, and yearly SIP corpuses should be.
Rs 2,500 SIP for 40 years vs Rs 25,000 SIP for 40 years
See which of them can create a higher corpus at a 12 per cent annualised return each.
At Rs 2,500 monthly investment for 40 years, the investment will be Rs 12,00,000, estimated capital gains will be Rs 2,85,06,051, and the estimated corpus will be Rs 2,97,06,051.
At Rs 25,000 monthly SIP investment for 21 years, the total investment will be Rs 63,00,000, estimated returns will be Rs 2,21,66,855, and the estimated corpus will be Rs 2,84,66,855.
Here, you can see that a Rs 2,500 monthly SIP investment created a larger corpus despite having Rs 51,00,000 less investment. It's because it got 19 years of extra compounding.
SIP investment for Rs 5 crore corpus
Here, we are targeting a Rs 5 crore corpus in 20, 25, or 30 years, and in each, we are expecting a 12 per cent annualised return.
We will calculate the estimated daily, monthly, and yearly SIP amounts to reach that target.
Daily SIP investment to reach Rs 5 crore corpus in 20 years
The estimated total investment will be Rs 1,19,73,511, and the estimated daily SIP amount will be Rs 1,640.21.
Monthly SIP investment to reach Rs 5 crore corpus in 20 years
The estimated total investment will be Rs 1,20,10,234, and the estimated monthly SIP investment will be Rs 50,042.64.
Yearly SIP investment to reach Rs 5 crore corpus in 20 years
The estimated total investment will be Rs 1,23,91,768, and the estimated yearly SIP investment will be Rs 6,19,588.39.
Daily SIP investment to reach Rs 5 crore corpus in 25 years
The estimated total investment will be Rs 78,60,849, and the estimated daily SIP amount will be Rs 861.46.
Monthly SIP investment to reach Rs 5 crore corpus in 25 years
The estimated total investment will be Rs 79,04,576, and the estimated monthly SIP investment will be Rs 26,348.59.
Yearly SIP investment to reach Rs 5 crore corpus in 25 years
The estimated total investment will be Rs 83,70,502, and the estimated yearly SIP investment will be Rs 3,34,820.08.
Daily SIP investment to reach Rs 5 crore corpus in 30 years
The estimated total investment will be Rs 50,57,844, and the estimated daily SIP amount will be Rs 461.9.
Monthly SIP investment to reach Rs 5 crore corpus in 30 years
The estimated total investment will be Rs 50,99,275, and the estimated monthly SIP investment will be Rs 14,164.65.
Yearly SIP investment to reach Rs 5 crore corpus in 30 years
The estimated total investment will be Rs 55,49,541, and the estimated yearly SIP investment will be Rs 1,84,984.71.
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