Power of Compounding: How much money do you need to invest in monthly SIP to make Rs 15 crore retirement corpus if started investing at 30? See calculations

SIP compounding interest

In SIP, there is a benefit of compounding interest. This means you get the interest on both the principal amount and the interest that has accumulated from previous periods.

Short-term withdrawal in SIP

If you want to take the full benefit of compounding, you should avoid withdrawing the amount before maturity.

How does compounding impact investment returns?

Compounding increases your investment returns over time and promotes faster development. It generates larger profits and promotes investment growth over time. The initial deposits compound over time to form a considerable corpus. The longer you invest, the more you may profit from the power of compounding.

SIP: Flexibility

If you are going through some financial issues, you can adjust the amount too as per your budget.

Rupee cost averaging

SIPs allow you to purchase more units when the net asset value (NAV) is low and fewer units when the NAV is high.

Investment in SIP makes you a disciplined investor

Since your money gets automatically deducted, it makes you to invest regularly.

SIP: What are the types of SIP?

Top-up SIP
Flexible SIP
Perpetual SIP 

What is NAV in SIP?

NAV (net asset value) is the price at which the investors buy or sell mutual fund units.

Invest this much in SIP to accumulate Rs 15 crore retirement corpus

Monthly SIP: Rs 42,500
Annual return: 12%
Duration: 30 years
Total investment in 30 years: Rs 1.53 crore
Estimated returns in 30 years: 13.47 crore
Maturity amount: 15 crore

Disclaimer: Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.