From Rs 10,000 Monthly SIP to Rs 6 Crore Retirement Corpus: How long will it take to generate huge corpus; know calculations
From Rs 10,000 monthly SIP to Rs 6 crore retirement corpus: In investments where you get compound growth, a long duration matters. If you stay in an investment for long, even modest returns and a low amount can help you generate a retirement corpus worth many crores.
From Rs 10,000 Monthly SIP to Rs 6 Crore Retirement Corpus: People build a retirement corpus for old days, but its preparation should be started from a young age. Early starters have an edge. Even if they get modest returns and have a low investment amount, they can generate a large retirement corpus that can help them meet their expenses easily in their old age. So, if one begins their investing journey at 25 years of age, they can generate a huge retirement corpus before 60 years of age that can help them meet their daily expenses post retirement. In this write-up, learn about the number of years the journey may take from Rs 10,000 monthly mutual fund SIP to Rs 6 crore retirement corpus.
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Monthly SIP investment for Rs 6 crore corpus
Since we are aiming for a Rs 6 crore corpus starting with a Rs 10,000 monthly SIP corpus, we will calculate the years to achieve that goal if the rate of annualised SIP return is 12 per cent, 13 per cent, 14 per cent, and 15 years, respectively. The investor will begin investing at 25 years of age.
Why mutual fund SIP
We are picking equity mutual fund SIP as the investment tool since returns of 12-15 per cent are possible in it.
Years to reach Rs 6 cr corpus at 12 per cent return
At 12 per cent annualised return, the journey from Rs 10,000 monthly SIP to Rs 6 crore corpus is likely to take 36 years.
Years to reach Rs 6 cr corpus at 12 per cent return
In 36 years, the total investment will be Rs 43,20,000, estimated long term capital gains will be Rs 5,75,28,974, and the estimated retirement corpus will be Rs 6,18,48,974.
Years to reach Rs 6 cr corpus at 13 per cent return
If one gets 13 per cent annualised returns, their journey from Rs 10,000 monthly SIP is likely to take 34 years.
If one gets 13 per cent annualised returns, their journey from Rs 10,000 monthly SIP is likely to take 34 years.
In 34 years, the total investment will be Rs 40,80,000, estimated long term capital gains will be Rs 5,78,72,766, and the estimated corpus will be Rs 6,19,52,766.
Years to reach Rs 6 cr corpus at 14 per cent return
At 14 per cent annualised SIP return, the journey from Rs 10,000 monthly SIP to Rs 6 crore retirement corpus is likely to take less than 32 years.
Years to reach Rs 6 cr corpus at 14 per cent return
In 32 years, the total investment will be Rs 38,40,000, estimated long term capital gains will be Rs 5,62,12,554, and the estimated retirement corpus will be Rs 6,00,52,554.
Years to reach Rs 6 cr corpus at 15 per cent return
At 15 per cent annualised SIP returns, the journey from Rs 10,000 monthly SIP to Rs 6 crore retirement corpus is likely to take a little over 30 years.
Years to reach Rs 6 cr corpus at 15 per cent return
In 31 years, total investment will be Rs 37,20,000, estimated long term capital gains will be Rs 6,11,74,902, and the estimated corpus will be Rs 6,48,94,902.
At what age will one have Rs 6 crore retirement corpus
At 12 per cent annualised returns, the 25-year-old is likely to achieve the Rs 6 crore retirement target by the age of 61 years.
At 13 per cent annualised returns, the 25-year-old is likely to achieve the Rs 6 crore retirement target by the age of 59 years.
At what age will one have Rs 6 crore corpus
At 14 per cent annualised returns, the 25-year-old is likely to achieve the Rs 6 crore retirement target by the age of 57 years.
At 15 per cent annualised returns, the 25-year-old is likely to achieve the Rs 6 crore retirement target by the age of 56 years.
Disclaimer
(Our calculations are projections and are not investment advice. Do your own due diligence or consult an expert for retirement planning.)