From Rs 12,000 Monthly SIP to Rs 8 Crore Retirement Corpus: How long will it take to generate large corpus; know maths
From Rs 12,000 monthly SIP to Rs 8 crore retirement corpus: Having a large corpus in the long run can help you bear your large expenses. But to reach that stage, one needs to start investing early and in schemes where they can get steady post tax returns.
From Rs 12,000 monthly SIP to Rs 8 crore retirement corpus: What you can do with a large retirement corpus? You can live a comfortable life; you don't have to depend on others for your daily expenses; or, if you don't have many responsibilities to be left with, you can gift that money to your children. But a large corpus can't be built just in a day. It takes years of years to generate a sizeable corpus that can make your retirement fruitful and that can make you feel financially free. The benefit of staying for a long time in an investment, where you get steady post tax returns, is that you can generate a large corpus. In this write-up, we will tell you how you can reach from Rs 12,000 monthly SIP to Rs 8 crore retirement corpus.
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Investment conditions for Rs 8 crore corpus
We will take the example of Rs 12,000 monthly SIP. Since our calculations are projections, we will tell you how many years it is likely to take to reach the Rs 8 crore corpus if your rates of annualised returns are 12, 13, 14, and 15 per cent.
Investment schemes for Rs 8 crore corpus
It can be anything, e.g., a mutual fund SIP investment. The condition is it should be something where an investor can make a monthly investment to generate annualised returns from 12 to 15 per cent.
Years to reach Rs 8 cr corpus at 12 per cent return
At 12 per cent annualised return, the journey from Rs 12,000 monthly SIP to Rs 8 crore corpus is likely to take a little over 36 years.
Years to reach Rs 8 cr corpus at 12 per cent return
In 37 years, total investment will be Rs 53,28,000, estimated long term capital gains will be Rs 7,79,50,218, and the estimated corpus will be Rs 8,32,78,218.
Years to reach Rs 8 cr corpus at 13 per cent return
At 13 per cent annualised SIP return, the journey from Rs 12,000 monthly SIP to Rs 8 crore retirement corpus is likely to take a little over 35 years.
Years to reach Rs 8 cr corpus at 13 per cent return
In 36 years, the total investment will be Rs 50,40,000, estimated long term capital gains will be Rs 7,91,21,901, and the estimated corpus will be Rs 8,41,61,901.
Years to reach Rs 8 cr corpus at 14 per cent return
At 14 per cent annualised SIP return, the journey from Rs 12,000 monthly SIP to Rs 8 crore retirement corpus is likely to take less than 33 years.
Years to reach Rs 8 cr corpus at 14 per cent return
In 33 years, total investment will be Rs 47,52,000, estimated long term capital gains will be Rs 7,75,54,595, and the estimated corpus will be Rs 8,23,06,595.
Years to reach Rs 8 cr corpus at 15 per cent return
If you get 15 per cent annualised SIP returns, the journey from Rs 12,000 monthly SIP to Rs 8 crore retirement corpus is likely to take a little over 31 years.
Years to reach Rs 8 cr corpus at 15 per cent return
In that period, total investment will be Rs 46,08,000, estimated long term capital gains will be Rs 8,51,02,414, and the estimated corpus will be Rs 8,97,10,414.
What can be learnt?
The duration of over 30 years appears to be quite long. But if one starts investing early in their career, e.g., at 25 years, they can reach the Rs 8 crore retirement corpus till their 60. A Rs 12,000 monthly investment may look like a large amount for a beginner at 25, but as the slarary or income will increase and inflation rises, investing Rs 12,000 won't be very hard 10 or 15 years down the line.
Disclaimer
(Our calculations are projections and are not investment advice. Do your own due diligence or consult an expert for retirement planning.)