From Rs 16,000 Monthly SIP to Rs 10 Cr Retirement Corpus: In how many years one can achieve this milestone; know it through calculations
From Rs 16,000 Monthly SIP to Rs 10 Cr Retirement Corpus: Consistency and long duration in investment play a key role in generating a large corpus. Even if the monthly investment is low and one makes it for a long time, the years of compounding can help them build a sizeable retirement corpus.
From Rs 16,000 Monthly SIP to Rs 10 Cr Retirement Corpus: What should be your monthly investment, at what age should you start it, and what investment schemes should you opt for? These are tough questions for a person who has just started earning a monthly income. An easy way to solve this problem is to identify your short- and long-term financial goals and plan your investments. It will give clarity about your monthly investment and the schemes that you should choose to achieve your financial goals. Amid this planning, one thing that will remain the most important is the habit of investing for a long time. If one invests a small amount for the long term, they have the possibility of building a large corpus compared to someone who is investing a large amount for a short period. Financial goals that appear to be difficult to achieve in the short term can be achieved with a consistent investment effort for a long time. In this write-up, through projections, we will show in how many years, a 25-year-old investor can achieve a Rs 10 crore retirement corpus with a Rs 16,000 monthly SIP investment if they get 12 per cent, 13 per cent, 14 per cent, or 15 per cent annualised returns on their contributions.
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Investment conditions
We will calculate the estimated retirement corpus on Rs 16,000 monthly investment. The rate of annualised return will be 12 per cent, 13 per cent, 14 per cent, and 15 per cent, respectively.
Investment scheme
It can be anything where returns of the above-mentioned range are available. For convenience, we are taking SIP investments in mutual funds.
Years to reach Rs 10 cr corpus at 12% annualised return
On 12 per cent annualised returns on their Rs 16,000 monthly investment, a 25-year-old investor can reach the Rs 10 crore corpus in 37 years.
Years to reach Rs 10 cr corpus at 12% annualised return
In that period, their total investment will be Rs 71,04,000, their estimated long term capital gains will be Rs 10,39,33,625, and their estimated retirement corpus will be Rs 11,10,37,625.
Years to achieve Rs 10 cr corpus at 13% annualised return
If they get 13 per cent annualised returns, it will take 35 years to reach the Rs 10 crore retirement corpus.
Years to achieve Rs 10 cr corpus at 13% annualised return
During that period, their investment will be Rs 67,20,000, estimated long term capital gains will be Rs 10,54,95,868, and the estimated retirement corpus will be Rs 11,22,15,868.
Years to achieve Rs 10 cr corpus at 13% annualised return
At 14 per cent annualised returns, the Rs 10 crore retirement corpus can be achieved in 33 years.
Years to achieve Rs 10 cr corpus at 14% annualised return
At 14 per cent annualised returns, the Rs 10 crore retirement corpus can be achieved in 33 years.In that period, the investment will be Rs 63,36,000, estimated capital gains will be Rs 10,34,06,127, and the estimated retirement corpus will be Rs 10,97,42,127.
Years to achieve Rs 10 cr corpus at 14% annualised return
In that period, the investment will be Rs 63,36,000, the estimated capital gains will be Rs 10,34,06,127, and the estimated retirement corpus will be Rs 10,97,42,127.
Years to achieve Rs 10 cr corpus at 15% annualised return
With that rate of growth, the Rs 10 crore retirement corpus goal can be achieved in 31 years.
Years to achieve Rs 10 cr corpus at 15% annualised return
In 31 years, the total investment will be Rs 59,52,000, the estimated long-term capital gains will be Rs 9,78,79,843, and the expected retirement corpus will be Rs 10,38,31,843.
At what age will one achieve Rs 10 crore retirement corpus (12% return)
A 25-year-old can achieve the Rs 10 crore retirement corpus by 62 years of age.
At what age will one achieve Rs 10 crore retirement corpus (13% return)
With that growth rate, the target can be achieved by 60 years of age.
At what age will one achieve Rs 10 crore retirement corpus (14% return)
The 25-year-old, thus, can build a Rs 10 crore retirement corpus by 58 years of age.
At what age will one achieve Rs 10 crore retirement corpus (15% return)
The 25-year-old can reach the Rs 10 crore retirement corpus milestone by 56 years of age.