Want to build Rs 10 crore retirement corpus? Know how it can be possible with Rs 15,400 monthly SIP
If you invest Rs 10,000 monthly in a SIP for 15 years, and get a 12 per cent annual return, your investment will be Rs 18 lakh, your estimated long term capital gain will be Rs 32,45,760, and the estimated amount will be Rs 50,45,760. But if you continue the same investment for 5 years more, the investment will be Rs 24,00,000, but the estimated long term capital gain will be Rs 75,91,479, and the estimated expected amount will be Rs 99,91,479.
From Rs 15,400 monthly SIP to Rs 10 crore corpus: If you want to see your money grow, investment is necessary, but if you want to see your money grow faster, early investment is necessary. Early investment can give you an edge over investors who start late as you may get compounding in many types of investments. A delay of just a few years can impact your retirement corpus by a few lakhs to a few crores. E.g., if you start a Rs 10,000 monthly SIP and make it for 15 years, and get a 12 per cent annual return, your investment will be Rs 18 lakh, your estimated long term capital gain will be Rs 32,45,760, and the estimated amount will be Rs 50,45,760. But if you continue the same investment for 5 years more, the investment will be Rs 24,00,000, but the estimated long term capital gain will be Rs 75,91,479, and the estimated expected amount will be Rs 99,91,479. If you continue the same investment for just 2 more years and keep getting a 12 per cent return on it, you will add just Rs 2,40,000 more to your investment, but the expected wealth gain will be Rs 1,03,18,959, and the expected amount will be Rs 1,29,58,959. Similarly, if you start investing Rs 15,400 SIP a month, you can dream of a Rs 10 crore retirement corpus. Know how it is possible.
(Disclaimer: Our calculation is for knowledge purpose only. It's not investment advice. Do your due diligence or consult an advisor for retirement planning.)
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SIP investment conditions
SIP amount for Rs 10 crore corpus if start at 40
If you start SIP investment at 40 years of age, you will have an investment horizon of 20 years. To reach a Rs 10 crore retirement corpus by 60, you need to make a Rs 100,086 monthly SIP. Your investment by that age will be Rs 2,40,20640, and the estimated long term capital gain will be Rs 7,59,80,079.