At Rs 30,000 monthly salary, can you generate Rs 6 crore, Rs 8 crore, and Rs 10 crore corpuses? Know here
Small Savings, Big Impact: A large corpus of Rs 10 crore from a salary of Rs 30,000 a month if one starts investing early. They also need to increase their investment with time, and the power of compounding can grow their investment to greater heights.
Corpus through Rs 5,000 monthly SIP investment in 30 years
Since we are talking about long-term investment, we are taking the example of the 30-year duration. All our calculations will have 12 per cent annualised returns.
At that return, a Rs 5,000 monthly SIP investment can generate an estimated corpus of Rs 1,76,49,569 on an investment of Rs 18,00,000.
Corpus through Rs 5,000 monthly step up SIP investment in 30 years
Since we have talked about increasing the investment amount with a rise in income, let's see what will happen with a 5 per cent annual raise in our investment amount.
The estimated corpus in such a case will be Rs 2,63,67,030 on an investment of Rs 39,86,331.
From Rs 10,000 SIP to Rs 10 crore corpus
It will take an estimated 39 years to get this target at a 12 per cent annualised return.
The investment will be Rs 46,80,000, estimated capital gains will be Rs 10,06,56,770, and the estimated corpus will be Rs 10,53,36,770.
From Rs 10,000 step up SIP to Rs 10 crore corpus
Now, if one increases their investment amount by 5 per cent, they can achieve the Rs 10 crore target in an estimated 35 years.
From Rs 10,000 step up SIP to Rs 10 crore corpus
The total investment in that period will be Rs 1,08,38,437, estimated capital gains will be Rs 8,88,57,661, and the estimated corpus will be Rs 9,96,96,098.
From Rs 20,000 salary to Rs 4 crore corpus
Now, let's see how a Rs 5 crore retirement corpus can be achieved with a Rs 20,000 monthly salary. We are assuming that a person will save 20 per cent of their salary to invest. So, in this case, the amount will be Rs 4,000 a month.
From Rs 20,000 salary to Rs 4 crore corpus
It will take an estimated 39 years to achieve a Rs 4 crore corpus goal from a Rs 4,000 monthly SIP investment at a 12 per cent annualised return.
In that period, the investment will be Rs 18,72,000, estimated capital gains will be Rs 4,02,62,708, and the estimated corpus will be Rs 4,21,34,708.
From Rs 20,000 salary to Rs 4 crore corpus through step up SIP
But if the same person increases their SIP investment amount by 5 per cent every year, they can achieve the Rs 4 crore corpus goal in an estimated little over 35 years.
From Rs 20,000 salary to Rs 4 crore corpus through step up SIP
During that period, the investment will be Rs 43,35,375, estimated capital gains will be Rs 3,55,43,064, and the estimated corpus will be Rs 3,98,78,439.
From Rs 30,000 salary to Rs 6 crore corpus
Here also, we will assume that the person will save 20 per cent of their salary every month and will start an SIP investment from that amount. So, the starting monthly SIP investment is Rs 6,000. We are assuming the investor to increase their monthly SIP investment by 5 per cent every year.
From Rs 30,000 salary to Rs 6 crore corpus
At 12 per cent annualised growth, it will take a little over 35 years to achieve the target through a 5 per cent step up SIP.
In 35 years, the total investment will be Rs 65,03,062, estimated capital gains will be Rs 5,33,14,597, and the estimated corpus will be Rs 5,98,17,659.
From Rs 30,000 salary to Rs 8 crore corpus
It will take a little over 37 years to achieve the target of an Rs 8 crore retirement corpus.
In 38 years, the total investment will be Rs 77,55,087; estimated capital gains will be Rs 7,93,37,424, and the estimated corpus will be Rs 8,70,92,511.
From Rs 30,000 salary to Rs 10 crore corpus
It will take a little over 39 years to achieve the target of the Rs 10 crore goal.
The investment in 39 years will be Rs 82,14,842; estimated capital gains will be Rs 9,04,13,942, and the estimated corpus will be Rs 9,86,28,783.
What are learnings?
Here you can see that the longer the investment tenure is, the faster the corpus is growing.
From 35 years to 39 years, the estimated corpus grew from Rs 5,98,17,659 to Rs 9,86,28,783.
One needs to start early, be consistent, and increase their investment amount to create a sizeable retirement corpus o live a comfortable post retirement life.