From Rs 14,000 Monthly SIP to Rs 8 Cr Retirement Corpus: In how many years you can achieve target if you get 12%, 13%, 14% and 15% returns on your investments
Retirement Corpus Planning: When we think about retirement planning, the biggest mental block that we feel is that we don't save enough to invest. But here two factors are important: we need to invest first and save the rest to run our monthly expenses; secondly, no investment is small if you do it consistently for a long time.
Retirement Planning: Building a large corpus can be a dream for everyone. A corpus that can help them meet their daily expenses easily in their retirement life. A fund large enough that can give them financial freedom or help it maintain in a life when they have no other source of income. When we think about retirement planning, the biggest mental block that we feel is that we don't save enough to invest. But here two factors are important: we need to invest first and save the rest to run our monthly expenses; secondly, no investment is small if you do it consistently for a long time. The third thing is to get steady post-tax returns on your investments. In this write-up, we will show that in how many years one can build a Rs 8 crore corpus with a monthly mutual fund SIP of Rs 14,000.
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Why SIP investment
It can be any investment that can give 12-15 per cent annualised returns. We are selecting SIP investment in equity mutual funds as an investment method since returns in that range are possible in it.
Investment conditions
We will show projections of Rs 14,000 monthly SIP returns in the long term. Calculations will be based on annualised SIP returns (XIRR) of 12 per cent, 13 per cent, 14 per cent, and 15 per cent, respectively. We will also tell that if an investor starts their investment at 25 years of age, by what age they can reach the Rs 8 crore retirement corpus.
Years to reach Rs 8 cr corpus at 12 per cent annualised return
If one gets 12 per cent annualised returns, they can reach the Rs 8 crore corpus in 36 years.
Years to reach Rs 8 cr corpus at 12 per cent annualised return
In that period, their total investment will be Rs 60,48,000, estimated long term capital gains will be Rs 8,05,40,563, and their estimated retirement corpus will be Rs 8,65,88,563.
Years to reach Rs 8 cr corpus at 13 per cent annualised return
If the same investor gets 13 per cent annualised returns on Rs 14,000 monthly SIP investment, they can reach the Rs 8 crore retirement corpus in 34 years.
Years to reach Rs 8 cr corpus at 13 per cent annualised return
During that investment period, the total investment will be Rs 57,12,000, estimated long term capital gains will be Rs 8,10,21,872, and the estimated corpus will be Rs 8,67,33,872.
Years to reach Rs 8 cr corpus at 14 per cent annualised return
If they get 14 per cent annualised returns on a Rs 14,000 monthly SIP, the journey to a Rs 8 crore retirement corpus will take 32 years.
Years to reach Rs 8 cr corpus at 14 per cent annualised return
In 32 years, the total investment will be Rs 53,76,000, estimated long term capital gains will be Rs 7,86,97,576, and the estimated retirement corpus will be Rs 8,40,73,576.
Years to reach Rs 8 cr corpus at 15 per cent annualised return
If the same investor gets 15 per cent annualised returns on their Rs 14,000 monthly SIP, they can reach the Rs 8 crore retirement corpus goal in a little over 30 years.
Years to reach Rs 8 cr corpus at 15 per cent annualised return
In 31 years, their total investment will be Rs 52,08,000, estimated long term capital gains will be Rs 8,56,44,862, and the estimated corpus will be Rs 9,08,52,862.
At what age will one achieve Rs 8 crore retirement corpus (12% return)
At 12 per cent annualised returns, the 25-year-old can achieve the Rs 8 crore retirement corpus target by the age of 61 years.
At what age will one achieve Rs 8 crore retirement corpus (13% return)
At 13 per cent annualised returns, the 25-year-old can achieve the Rs 8 crore retirement corpus target by the age of 59 years.
At what age will one achieve Rs 8 crore retirement corpus (14% return)
At 14 per cent annualised returns, the 25-year-old can achieve the Rs 8 crore retirement corpus target by the age of 57 years.
At what age will one achieve Rs 8 crore retirement corpus (15% return)
At 15 per cent annualised returns, the 25-year-old can achieve the Rs 8 crore retirement corpus target by the age of 56 years.