Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations

Retirement Planning: Whether you're a salaried employee, a small business owner, or an individual, planning for retirement is essential. It ensures that, after retirement, you won't have to rely on others for your daily expenses. There are numerous options available for building a strong retirement corpus, and one highly effective strategy is investing in mutual fund SIPs.

Retirement Planning: Want to build over Rs 8 crore with Rs 25K monthly SIP?

If you want to build a retirement corpus of Rs 8 crore with Rs 25,000 monthly SIP, then you have to plan and invest in SIP strategically. So, in how many years your investment will grow to Rs 8 crore corpus? Know through calculations - 

Build Rs 8 crore with Rs 25K monthly SIP: If annualised return is 12%

To accumulate a corpus of Rs 8 crore, assuming an average return rate of 12 per cent, you need to invest for 30 years. 

Build Rs 8 crore with Rs 25K monthly SIP: Calculating average investment

In 30 years, you will invest a total of Rs 90,00,000 i.e., Rs 25,000 per month.

Also Read: 12-15-20 formula SIP: How you can build Rs 1 cr corpus in 15 yrs by using this SIP formula | Know here

Build Rs 8 crore with Rs 25K monthly SIP: Calculating average capital gain

Calculating the average expected return of SIP at 12 per cent, a total of Rs 7,92,47,844 will be received as a capital gain on this amount in 30 years. 

Build Rs 8 crore with Rs 25K monthly SIP: Calculation to create a corpus of over Rs 8 crore

Consequently, at the end of 30 years, including the principal investment and capital gain, you will get a total of Rs 8,82,47,844.

Calculation - You become the owner of Rs 8 crore after 30 years

Total Investment Amount: Rs 90,00,000
Capital Gains: Rs 7,92,47,844
Total Approx. Return: Rs 8,82,47,844

Benefits of SIP

SIP offers significant benefits, primarily due to the power of compounding. The longer the SIP duration, the greater the compounding benefits. With an average annual return of 15 per cent, SIPs offer substantial growth, outperforming many other investment schemes. Additionally, the rupee cost averaging feature ensures that expenses remain stable, even during market fluctuations. 

(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)