Can savings of Rs 10, Rs 50, and Rs 100 a day help build corpuses worth Rs 10 lakh, Rs 50 lakh, and Rs 1 crore; know calculations
Savings Calculator: If you save Rs 10 a day, your total savings in 1 year will be Rs 3,650. If you divide it by 12, in each month of the year, you can invest Rs 304.16.
Investment Calculator: What is Rs 10, Rs 50, or Rs 100 a day for you? Probably a miniscule amount that is insufficient to purchase most of the things on your wishlist, let alone running your daily expenditure. But saving in these small proportions can do wonders if you also invest them and compound your investments for long duration. Annual compounded returns in many schemes can help you generate a large corpus with these amounts. In this write-up, we will tell you how Rs 10, Rs 50, and Rs 100 savings a day can help you generate corpuses as big as Rs 10 lakh, Rs 50 lakh, and Rs 1 crore.
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(Disclaimer: Calculations are for investment purpose only. This is not investment advice. Do you own due diligence or consult an expert before investing.)
Monthly investment amount with Rs 10/day savings
If you save Rs 10 a day, your total savings in 1 year will be Rs 3,650. If you divide it by 12, in each month of the year, you can invest Rs 304.16.
Monthly investment amount with Rs 50/day savings
If your saving is Rs 50 a day, your total savings in 1 year will be Rs 18,250. It means that each month, you can invest Rs 1,520.83.
Monthly investment amount with Rs 100/day savings
With Rs 100 saving per day, your savings in 1 year will be Rs 36,500, so your monthly investment can be Rs 3,041.66.
What can be your investment?
It can be anything, where you get annualised return of at least 12.50 per cent. We are taking SIP mutual fund investment for our calculations as in some funds you can do SIPs of as low as Rs 100. At the same time, in equity mutual fund, it is possible to get 12.50 per cent annualised return in the long run.
From Rs 10/day savings to Rs 10 lakh corpus
If you invest Rs 304.16 a month in a SIP and get 12.50 per cent return on it, in 30 years, your investment will be Rs 10,94,40, the estimated long term capital gains will be Rs 9,25,240, and the estimated wealth will be Rs 10,34,680.
From Rs 50/day savings to Rs 50 lakh corpus
If you invest Rs 1,520.83 a month, your investment in 30 years will be Rs 5,47,200. Estimated long term capital gains will be Rs 46,26,198, and the estimated amount will be Rs 51,73,398.
From Rs 100/day savings to Rs 1 crore corpus
If your monthly investment is Rs 3,0441.66, your total investment in 30 years will be Rs 10,94,760, estimated long term capital gains will be Rs 92,55,440, and the expected amount will be Rs 1,03,50,200.
Isn't 30 years a long period for investment
Thirty years is quite a long time, but if one starts investing from 25 years of age, by the age of 55 years, they can build these large corpuses with small savings of Rs 10, Rs 50, or Rs 100 a day.