How many years it will take to convert Rs 10,000 monthly SIP into Rs 10 crore corpus; get details
From Rs 10,000 Monthly SIP to Rs 10 Crore Corpus: A steady approach and a long-investment horizon are necessary to create a huge corpus. An early starter gets an edge over a late starter in investment journey due to compound growth of investment.
From Rs 10,000 monthly SIP to Rs 10 crore corpus: When one starts a job or begins their earning from a business or any other income source, they hardly think about saving money at that stage. Even if they, thinking about creating a retirement corpus appears to be a distant dream for many starters. The majority of people think let's enjoy life first, and then in the 30s or near 40s, we will think about the retirement corpus. But when it comes to creating a huge retirement corpus, those initial years of professional life matter a lot. If one starts their retirement journey from 25 years of age, they have a significant edge over a person who starts investing at 40. Even if the investment amount of a 25-year-old is smaller and the investment horizon is larger than the one who starts at 40, the former is most likely to create a much larger corpus than the latter. It can happen because of years of compounding in investment. In this write-up, through projections, we will show is it possible to create a Rs 10 crore retirement corpus with a Rs 10,000 monthly SIP? How many years it may take, and what should be the estimated rate of growth.
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Investment conditions
In our projections, we are taking the example of a 25-year-old person who will invest Rs 10,000 monthly through an SIP in a mutual fund scheme(s). We will calculate investment return at the rates of 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised growth, respectively.
Investment conditions
We will show by what age the 25-year-old investor can gather Rs 10 crore retirement corpus. The reason behind selecting the mutual fund SIP investment is that it is possible to get annualised growth of 12-15 per cent in such a type of investment.
What if investor gets 12 per cent return on SIP investment?
On a 12 per cent annualised SIP return, it will take an estimated 41 years to reach the Rs 10 crore corpus. The investor's age by that time will be 66 years.
What if investor gets 12 per cent return on SIP investment?
In those 41 years, the investment will be Rs 49,20,000, the estimated long term capital gains will be Rs 10,48,90,060, and the estimated corpus will be Rs 10,98,10,060.
What if investor gets 13 per cent return on SIP investment?
On a 13 per cent annualised SIP return, the journey from a Rs 10,000 monthly SIP to the Rs 10 crore retirement corpus will take an estimated 38 years. The investor's age by that time will be 63 years.
What if investor gets 13 per cent return on SIP investment?
The investment in those 40 years will be Rs 45,60,000, the estimated long-term capital gains will be Rs 9,70,74,541, and the estimated retirement corpus will be Rs 10,16,34,541.
What if investor gets 14 per cent return on SIP investment?
On 14 per cent annualised SIP returns, the estimated time to reach from Rs 10,000 monthly SIP to Rs 10 crore corpus will be 36 years. The investor's age by that time will be 61 years.
What if investor gets 14 per cent return on SIP investment?
Their investment in 36 years will be Rs 43,20,000, the estimated long term capital gains will be Rs 9,77,40,795, and the estimated corpus will be Rs 10,20,60,795.
What if investor gets 15 per cent return on SIP investment?
If they get 15 per cent annualised SIP returns on their investment, the investor will complete the Rs 10 crore retirement corpus journey in a little over 34 years. The investor's age by that time will be a little over 59 years.
What if investor gets 15 per cent return on SIP investment?
In the 34-year period, their invested amount will be Rs 40,80,000, estimated long term capital gains will be Rs 9,50,66,868, and the estimated corpus will be Rs 9,91,46,868.