Rs 16,000 SIP to Rs 10 crore corpus: How many years may it take to achieve this goal if one gets 12%, 13%, 14%, or 15% annualised returns?
Rs 16,000 SIP to Rs 10 crore corpus: In retirement planning, long-term, consistent investment and above-average post-tax returns play a key role in generating a large corpus. Even a Rs 10 crore corpus can be created if one starts their investment journey early and keeps investing for a long term.
Rs 16,000 SIP to Rs 10 crore corpus: Everyone wants to have a comfortable post retirement life. But to live that life, financial freedom is necessary. Financial freedom comes when one has planned their retirement properly. Starting to invest early in a career can help one generate a sizeable retirement corpus. They need to be consistent and ensure that they get consistent post-tax returns on their investments. It can help them generate a large corpus with a small monthly or lump sum investment. If they delay it by only a few years, they may have to invest quite a larger amount to achieve the same retirement corpus goal. It happens because compounding helps grow the corpus faster with time. Here, we take you through calculations of creating a Rs 10 crore corpus from a Rs 16,000 monthly SIP investment. See in how many years one can achieve the goal if their annualised investment returns are 12 per cent, 13 per cent, 14 per cent, and 15 per cent, respectively.
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How small SIP amount can create large corpus
Let's take the example of a Rs 3,000 monthly SIP investment and see that at a 12 per cent annualised return, how this can create a Rs 3 crore corpus.
In 20 years, the investment will be Rs 7,20,000, and the estimated corpus will be Rs 29,97,444.
How small SIP amount can create large corpus
In 30 years, the investment will be Rs 10,80,000, and the estimated corpus will be Rs 1,05,89,741.
In 39 years, the investment will be Rs 14,04,000, and the estimated corpus will be Rs 3,16,01,031.
From Rs 20,000 monthly SIP to Rs 20 crore corpus?
Now, increase the monthly investment amount to Rs 20,000 and see what the impact is at a 12 per cent annualised return.
In 20 years, the investment will be Rs 48,00,000, and the estimated corpus will be Rs 1,99,82,958.
From Rs 20,000 monthly SIP to Rs 20 crore corpus?
In 30 years, the investment will be Rs 72,00,000, and the estimated corpus will be Rs 7,05,98,275.
In 39 years, the investment will be 93,60,000, and the estimated corpus will be Rs 21,06,73,540.
What are learnings?
Here, you see that any retirement corpus can be achieved if one starts early and stays in their investment for a long period. Compound growth of investments in helping the corpus grow faster in later stages in each of the 2 cases.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 12% return)
It will take approximately 35 years to achieve the target. The total investment in that period will be Rs 67,20,000.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 12% return)
Estimated capital gains will be Rs 9,72,04,305, and the estimated corpus will be Rs 10,39,24,305.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 13% return)
It will take approximately 33 years to achieve a Rs 10 crore retirement corpus target. The total investment in that time frame will be Rs 63,36,000.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 13% return)
Estimated capital gains will be Rs 9,86,19,967, and the estimated corpus will be Rs 10,49,55,967.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 14% return)
It will take approximately 31 years to achieve a Rs 10 crore retirement corpus target. The total investment in that time frame will be Rs 59,52,000.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 14% return)
Estimated capital gains will be Rs 9,64,46,523, and the estimated corpus will be Rs 10,23,98,523.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 15% return)
It will take approximately a little over 30 years to reach the Rs 10 crore retirement corpus target. The total investment in 31 years will be Rs 57,60,000.
From Rs 16,000 monthly SIP to Rs 10 crore corpus (at 15% return)
Estimated capital gains will be Rs 10,63,97,130, and the estimated corpus will be Rs 11,21,57,130.
Conclusion
Here, you can see that 1 per cent extra annualised return can fast-track the process of achieving a retirement corpus goal. The same target can be achieved in approximately 35 years at a 12 per cent annualised return that can be achieved in a little over 30 years at a 15 per cent annualised return. It is because of the compound growth of investment.