Retirement Planning: See how your Rs 20,000 monthly SIP investment will grow in 20 years at 12%, 13%, 14% and 15% return rates

Retirement Planning: It's never too late to start planning for your retirement. You can begin building your post-retirement corpus whenever you choose. The key is to make a plan and start accumulating funds for your retirement. By doing so, you ensure that, in your old age, you won't have to rely on anyone else for your daily expenses.

Confused About Where to Invest?

If you want to build a substantial corpus for your retirement, there are numerous investment options available. One of the most popular and effective choices is the mutual fund SIP (Systematic Investment Plan). By consistently investing a portion of your salary into a SIP, you can grow your wealth and potentially become a crorepati over time.

Retirement Planning: How Much Money Can You Build With a Rs 20K Monthly SIP Investment Over 20 Years?

If you plan to build your retirement corpus with a monthly SIP of Rs 20,000, it’s important to approach this strategically. The amount of money you can accumulate depends on the annualised return rate you receive. It’s crucial to understand that SIPs are market-linked, so returns are not guaranteed. The 12% annualised return is an average return for equity funds, and actual returns can vary based on market conditions. In this article, we’ll calculate returns at 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualized rates.

Let’s assume you’re investing Rs 20,000 every month in an SIP for 20 years. According to the SIP calculator, your total investment over 20 years would be Rs 48,00,000. Now, let’s calculate the capital gain and total amount received at 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised returns:

How much money you can build with Rs 20K monthly SIP investment: If annualised return is 12%

With an annualised return of 12 per cent, the estimated capital gain could be around Rs 1,51,82,958. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 1,99,82,958 over 20 years.

Also Read: How your child may have over Rs 1.13 crore corpus by 21 years of age if you invest Rs 10,000 monthly in SIP

How much money you can build with Rs 20K monthly SIP investment: If annualised return is 13%

With an annualised return of 13 per cent, the estimated capital gain could be around Rs 1,81,10,383. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 2,29,10,383 over 20 years.

How much money you can build with Rs 20K monthly SIP investment: If annualised return is 14%

With an annualised return of 14 per cent, the estimated capital gain could be around Rs 2,15,26,926. Over 20 years, your investment could grow to approximately Rs 2,63,26,926.

How much money you can build with Rs 20K monthly SIP investment: If annualised return is 15%

With an annualised return of 15 per cent, the estimated capital gain could be around Rs 2,55,19,099. Over 20 years, your investment could grow to approximately Rs 3,03,19,099.

Benefits of SIP

Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost averaging, which helps mitigate losses. However, keep in mind the inherent risks of investing in SIP and plan accordingly.

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