Rs 10,000 Monthly SIP vs Rs 30,000 Quarterly SIP: Which can give you higher return in 15, 20, 25, and 30 years? See calculations to know
Rs 10,000 Monthly SIP vs Rs 30,000 Quarterly SIP: Systematic Investment Plan (SIP) is a method to invest in mutual funds. Mutual fund houses and financial services firms offer SIPs of different amounts and durations. Investors can start investing through SIP that suits their earning cycle.
Rs 10,000 Monthly SIP vs Rs 30,000 Quarterly SIP: When we talk about mutual fund investment, there are two ways to invest in them. An investor can do it through a systematic investment plan (SIP) or lump sum. While in a lump sum, they invest one time; an SIP allows them to invest periodically. Mutual fund houses and financial services companies offer SIPs of different amounts and durations. They can be daily, weekly, monthly, quarterly, half-yearly, or yearly. Know more about SIP investment in this write-up and know which of the 2 investments—Rs 10,000 Monthly SIP vs Rs 30,000 Quarterly SIP- can generate a higher corpus in 15, 20, 25, and 30 years.
Photos: Unsplash/Pixabay
What is SIP investment?
It's a way to invest in mutual funds, where they can start with as little as Rs 100 monthly investment. The unique thing about it is that an investor can pick different investment cycles based on their income cycle.
What are different durations for SIP?
The SIP can be daily, weekly, monthly, quarterly, half-yearly, or annually.
Power of compounding
SIP investment provides compound growth. It's because the investor purchases net asset value (NAV) units at different prices. In the long term, this difference increases the investment value substantially.
Minimum and maximum SIP investments
Some mutual fund houses have a minimum SIP investment of Rs 100, while most have Rs 500. There is no maximum limit.
Calculations for story
We are calculating projected returns from a Rs 10,000 monthly SIP investment and a Rs 30,000 quarterly SIP investment for 15, 20, 25, and 30 years. The annualised rate of growth will be 12 per cent.
Corpus from Rs 10,000 monthly SIP investment for 15 years
Investment in 15 years will be Rs 18,00,000, and the estimated corpus generated will be Rs 50,45,760.
Corpus from Rs 10,000 monthly SIP investment for 20 years
The investment will grow to Rs 24,00,000, and the estimated corpus will be Rs 99,91,476.
Corpus from Rs 10,000 monthly SIP investment for 25 years
The total investment will be Rs 30,00,000, while the estimated corpus will be Rs 1,89,76,351.
Corpus from Rs 10,000 monthly SIP investment for 30 years
The investment will be Rs 36,00,000, and the estimated corpus will be Rs 3,52,99,138.
Corpus from Rs 30,000 quarterly SIP investment for 15 years
The total investment in 15 years will be Rs 18,00,000, and the estimated corpus will be Rs 50,38,351.
Corpus from Rs 30,000 quarterly SIP investment for 20 years
The total investment will be Rs 24,00,000, and the estimated corpus will be Rs 99,30,117.
Corpus from Rs 30,000 quarterly SIP investment for 25 years
The total investment will be Rs 30,00,000, and the estimated corpus will be Rs 1,87,65,191.
Corpus from Rs 30,000 quarterly SIP investment for 30 years
The total investment in 30 years will be Rs 36,00,000, and the estimated corpus will be Rs 3,47,22,317.