Retirement Planning via SIP: How soon your Rs 2,000 monthly investment can reach to Rs 1 crore target?
Retirement Planning via SIP: To build a substantial corpus for the long term through consistent and disciplined investment, a Systematic Investment Plan (SIP) in mutual funds can be helpful. In this article, we will explain, with calculations, how long it will take to reach the Rs 1 crore target with a monthly SIP investment of Rs 2,000.
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Retirement Planning via SIP: With rising inflation, are you also worried about how to manage your future financial needs? If yes, it's time to start planning and investing a portion of your income. To build a substantial corpus for the long term through consistent and disciplined investment, a Systematic Investment Plan (SIP) in mutual funds can be helpful.
What is an SIP Mutual Fund?
An SIP is an investment option that helps investors achieve long-term financial goals, such as building a substantial corpus for retirement, marriage, education, etc. With an SIP, you can invest a fixed amount at regular intervals—monthly, quarterly, or annually—depending on your capacity. SIP leverages the power of compounding which means you earn returns not only on your principal amount but also on the capital gains.
In this article, we will explain, with calculations, how long it will take to reach the Rs 1 crore target with a monthly SIP investment of Rs 2,000.
Retirement Planning via SIP: How Many Years Will It Take to Reach the Rs 1 Crore Target with Rs 2,000 Monthly SIP Investment?
According to the calculator, it would take at least 33 years to accumulate Rs 1 crore with an SIP investment of Rs 2,000 per month. Let’s break it down:
Suppose you invest Rs 2,000 monthly in an SIP mutual fund for 33 years. Over this period, your total investment will be Rs 7,92,000. Assuming an average annual return of 12 per cent, your expected capital gain would be Rs 93,95,996. By the end of 33 years, your total corpus would grow to approximately Rs 1,01,87,996.
Full Calculations:
- Invested Amount: Rs 7,92,000
- Capital Gain: Rs 93,95,996
- Total Value: Rs 1,01,87,996
Year | SIP Amt / Month |
Total Invested Amt |
Interest Amt / Year |
Maturity Value |
Year1 | 2,000 | 24,000 | 1,619 | 25,619 |
Year2 | 2,000 | 48,000 | 6,486 | 54,486 |
Year3 | 2,000 | 72,000 | 15,015 | 87,015 |
Year4 | 2,000 | 96,000 | 27,670 | 1,23,670 |
Year5 | 2,000 | 1,20,000 | 44,973 | 1,64,973 |
Year6 | 2,000 | 1,44,000 | 67,514 | 2,11,514 |
Year7 | 2,000 | 1,68,000 | 95,958 | 2,63,958 |
Year8 | 2,000 | 1,92,000 | 1,31,053 | 3,23,053 |
Year9 | 2,000 | 2,16,000 | 1,73,643 | 3,89,643 |
Year10 | 2,000 | 2,40,000 | 2,24,678 | 4,64,678 |
Year11 | 2,000 | 2,64,000 | 2,85,230 | 5,49,230 |
Year12 | 2,000 | 2,88,000 | 3,56,504 | 6,44,504 |
Year13 | 2,000 | 3,12,000 | 4,39,862 | 7,51,862 |
Year14 | 2,000 | 3,36,000 | 5,36,836 | 8,72,836 |
Year15 | 2,000 | 3,60,000 | 6,49,152 | 10,09,152 |
Year16 | 2,000 | 3,84,000 | 7,78,756 | 11,62,756 |
Year17 | 2,000 | 4,08,000 | 9,27,842 | 13,35,842 |
Year18 | 2,000 | 4,32,000 | 10,98,878 | 15,30,878 |
Year19 | 2,000 | 4,56,000 | 12,94,651 | 17,50,651 |
Year20 | 2,000 | 4,80,000 | 15,18,296 | 19,98,296 |
Year21 | 2,000 | 5,04,000 | 17,73,348 | 22,77,348 |
Year22 | 2,000 | 5,28,000 | 20,63,792 | 25,91,792 |
Year23 | 2,000 | 5,52,000 | 23,94,115 | 29,46,115 |
Year24 | 2,000 | 5,76,000 | 27,69,374 | 33,45,374 |
Year25 | 2,000 | 6,00,000 | 31,95,270 | 37,95,270 |
Year26 | 2,000 | 6,24,000 | 36,78,224 | 43,02,224 |
Year27 | 2,000 | 6,48,000 | 42,25,472 | 48,73,472 |
Year28 | 2,000 | 6,72,000 | 48,45,169 | 55,17,169 |
Year29 | 2,000 | 6,96,000 | 55,46,503 | 62,42,503 |
Year30 | 2,000 | 7,20,000 | 63,39,828 | 70,59,828 |
Year31 | 2,000 | 7,44,000 | 72,36,809 | 79,80,809 |
Year32 | 2,000 | 7,68,000 | 82,50,594 | 90,18,594 |
Year33 | 2,000 | 7,92,000 | 93,95,996 | 1,01,87,996 |
Things to Remember
It’s important to note that SIPs are market-linked investments, meaning that returns are not guaranteed. The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
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