Power of Rs 9,000 SIP: Can one generate over Rs 10 crore corpus, with just Rs 9,000 monthly investment?

Let’s find out how you can generate a massive amount of Rs 10 crore with just Rs 9,000 monthly investment. We will understand it through calculations.

Anamika Singh | Jan 29, 2025, 12:04 PM IST

Turning a small amount of Rs 9000 into a sizeable corpus of Rs 10 crore may sound like a dream but one can turn this dream into a reality with the help of the power of compounding. The key to building such a massive corpus is consistency and early investment. Let’s find out how long it will take to generate this target corpus with just Rs 9,000 monthly investment in a systematic investment plan (SIP).

Photos source: Pixabay/Representational

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)

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What is a systematic investment plan (SIP)?

What is a systematic investment plan (SIP)?

It is an investment scheme where you can invest a fixed amount in mutual funds. Investors can invest daily, weekly, monthly, quarterly, or yearly, depending on their choice. 

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Why should one opt for SIP?

Why should one opt for SIP?

SIP is beginner-friendly, by investing even a small of Rs 100 regularly, first-time investors can start their journey toward building a sizeable corpus. It is also convenient, with automated deductions you don’t have to worry about missing out on investment.

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Why investing early is key to building a sizeable corpus?

Why investing early is key to building a sizeable corpus?

To get maximum returns from investment in the long run one should start investing early. Let’s understand it through an example.

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Start early

Start early

Investor A: Starts investing Rs 5,000/month at age 25 and continues till age 45 (20 years).
Total Investment: Rs 12,00,000
Maturity Amount (at 12% annual return): Rs 50,00,000

Investor B: Starts investing Rs 5,000/month at age 35 and continues till age 55 (20 years).
Total Investment: Rs 12,00,000
Maturity Amount (at 12% annual return): Rs 28,00,000

By starting 10 years earlier, Investor A earns ₹22,00,000 more, showcasing the power of compounding.

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SIP calculations

SIP calculations

Target corpus: Rs 10 crore
Monthly investment: Rs 9,000
Annualised return: 12 per cent

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How long it will take to create a corpus of Rs 10 crore with Rs 9,000 monthly SIP

How long it will take to create a corpus of Rs 10 crore with Rs 9,000 monthly SIP

It will take approximately 40 years to generate Rs 10 crore.

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How much can Rs 9,000 monthly SIP build in 10 years?

How much can Rs 9,000 monthly SIP build in 10 years?

The investment amount will be Rs 10,80,000, the capital gains will be Rs 10,11,052, and the estimated retirement corpus will be Rs 20,91,052. 

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How much can Rs 9,000 monthly SIP build in 20 years?

How much can Rs 9,000 monthly SIP build in 20 years?

The investment amount will be Rs 21,60,000, the capital gains will be Rs 68,32,331, and the estimated retirement corpus will be Rs 89,92,331.

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How much can Rs 9,000 monthly SIP build in 30 years?

How much can Rs 9,000 monthly SIP build in 30 years?

The investment amount will be Rs 32,40,000, the capital gains will be Rs 2,85,29,224, and the estimated retirement corpus will be Rs 3,17,69,224.

 

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How much can Rs 9,000 monthly SIP build in 40 years?

How much can Rs 9,000 monthly SIP build in 40 years?

The investment amount will be Rs 43,20,000, the capital gains will be Rs 10,26,21,782, and the estimated retirement corpus will be Rs 10,69,41,782.

 

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