Power of Compounding: How much corpus can you accumulate in 10 years with Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 monthly investment? See calculations
Power of Compounding: Whether you are a salaried employee or an individual, accumulating a substantial corpus for future needs is essential. In today's world, Systematic Investment Plans (SIPs) in mutual funds are considered one of the best investment options for wealth creation. This may be because SIPs can offer good returns over the long term, and people can invest monthly, quarterly, or annually based on their convenience and capacity. The key to building a substantial fund through SIPs is consistency. In this write-up, we will explain with calculations how much corpus you can accumulate over 10 years with monthly SIP investments of Rs 1,000, Rs 2,000, Rs 3,000, and Rs 4,000.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Assuming an Annualised Return of 12%
For these calculations, we are assuming an average annual return rate of 12 per cent.
How Much Money Can You Build with Rs 1,000 Monthly SIP Investment in 10 Years?
With a 12 per cent annual return rate, you can build an approximate corpus of Rs 2,32,339 in 10 years.
SIP of Rs 1,000 Monthly Investment: Calculations
- Total Investment: Rs 1,20,000
- Expected Capital Gain: Rs 1,12,339
- Total Corpus Received: Rs 2,32,339
How Much Money Can You Build with Rs 2,000 Monthly SIP Investment in 10 Years?
With a 12 per cent annual return rate, you can build an approximate corpus of Rs 4,64,678 in 10 years.
SIP of Rs 2,000 Monthly Investment: Calculations
- Total Investment: Rs 2,40,000
- Expected Capital Gain: Rs 2,24,678
- Total Corpus Received: Rs 4,64,678
How Much Money Can You Build with Rs 3,000 Monthly SIP Investment in 10 Years?
With a 12 per cent annual return rate, you can build an approximate corpus of Rs 6,97,017 in 10 years.
SIP of Rs 3,000 Monthly Investment: Calculations
- Total Investment: Rs 3,60,000
- Expected Capital Gain: Rs 3,37,017
- Total Corpus Received: Rs 6,97,017
How Much Money Can You Build with Rs 4,000 Monthly SIP Investment in 10 Years?
With a 12 per cent annual return rate, you can build an approximate corpus of Rs 9,29,356 in 10 years.
SIP of Rs 4,000 Monthly Investment: Calculations
- Total Investment: Rs 4,80,000
- Expected Capital Gain: Rs 4,49,356
- Total Corpus Received: Rs 9,29,356
Important Points to Keep in Mind While Investing in SIP
SIP is a market-linked investment, which means returns are not guaranteed. The calculations above are based on an assumed 12 per cent return, but actual returns can be higher or lower.
SIPs Benefit from Compounding and Rupee Cost Averaging
SIPs benefit from compounding and rupee cost averaging over time, making them a powerful wealth-building tool in the long run.
Remember
SIPs do carry market risks, so it is essential to understand these risks before investing. Always conduct thorough research or consult a financial advisor before making any investment decisions.