Magic of Rs 10,000 SIP: Can one achieve Rs 6 crore corpus with Rs 10,000 monthly investment?
Discover how a disciplined and consistent investment of Rs 10,000 in a monthly systematic investment plan (SIP) can help you achieve Rs 6 crore retirement corpus over time. Explore the power of compounding and smart financial planning.
Investing through a Systematic Investment Plan (SIP) is one of the most effective ways to build a large corpus over time. But can a modest Rs 10,000 monthly SIP grow into a huge Rs 6 crore corpus? The answer lies in the magic of compounding, disciplined investing, and staying invested long term. Achieving such a goal may seem ambitious, but the right investment in SIP mutual funds, and a consistent approach can make it possible. This article explores how compounding can help an investor achieve the target retirement corpus of Rs 6 crore. Let’s understand.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Understanding SIP
SIP is a way of investing in a mutual fund with a fixed amount at regular intervals, it can be daily, weekly, monthly, quarterly, and yearly. Investors can also start with a minimum amount of Rs 100.
Why choose SIP?
A systematic investment plan is affordable as it allows individuals to start with a small amount, making it accessible to everyone. It is also convenient. With automated deductions, you don’t have to worry about remembering to invest.
Start early, stay consistent
The earlier one starts, the more time their money gets to grow. For example, beginning in your 20s can reduce your investment amount considerably and help you achieve the goal with a smaller amount compared to someone who begins late and invests a larger amount.
Simple and beginner-friendly
SIP is ideal for beginners, by investing small amounts regularly, first-time investors can start their journey toward building a large corpus.
How much corpus can Rs 10,000 monthly SIP build in 10 years; see calculations
The estimated corpus with Rs 10,000 monthly SIP investment at 12 per cent annualised return in 10 years will be Rs 23,23,391.
Capital gains and invested amount in SIP of Rs 10,000 in 10 years
The estimated investment amount during this time will be Rs 12,00,000 and estimated capital gains will be Rs 11,23,391.
How much corpus can Rs 10,000 monthly SIP build in 20 years; see calculations
A monthly SIP investment of Rs 10,000 at 12 per cent annualised return for 20 years can build estimated Rs 99,91,479 corpus.
Capital gains and invested amount in SIP of Rs 10,000 in 20 years
The estimated investment amount during this time will be Rs 24,00,000 and estimated capital gains will be Rs 75,91,479.
How much corpus can Rs 10,000 monthly SIP build in 30 years; see calculations
In 30 years the estimated corpus will be Rs 3,52,99,138.
Capital gains and invested amount in SIP of Rs 10,000 in 30 years
The estimated investment amount during this time will be Rs 36,00,000 and estimated capital gains will be Rs 3,16,99,138.
How much corpus can Rs 10,000 monthly SIP build in 35 years; see calculations
The Magic of Rs 10,000 SIP investment will be clear in 35 years. The estimated corpus will be Rs 6,49,52,691. The estimated capital gains will be Rs 6,07,52,691, and the invested amount during this time will be Rs 42,00,000.