Power of Rs 15,000 SIP: How long it will take to achieve Rs 7 crore corpus? See calculations to know
Let’s find out how a disciplined and consistent investment of Rs 15,000 in a monthly systematic investment plan (SIP) can help you achieve Rs 7 crore retirement corpus in the long run.
SIP is a popular investment option that helps individuals build a sizeable retirement corpus. Even a small amount can do wonders. The key to generating a satisfactory corpus is starting early and staying consistent. The power of compounding plays a great role, it encourages people to create goals and then work on them to achieve them. Similarly, if you invest Rs 15,000 in a monthly systematic investment plan (SIP) you can generate a retirement corpus of Rs 7 crore. Let’s understand how.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
SIP
A systematic investment plan (SIP) is a process of investing a fixed amount in mutual funds. You can invest daily, weekly, monthly, quarterly, or yearly, it depends on the choice of the investors.
Why should one opt for SIP?
SIP is reasonable as individuals can start with a small amount of Rs 100. It is also convenient, with automated deductions you don’t have to worry about missing out on investment.
SIP is simple and beginner-friendly
SIP is perfect for beginners, by investing even a small amount regularly, first-time investors can start their journey toward building a sizeable corpus.
Start early
Investor A: Starts investing Rs 5,000 per month at age 25 and continues till age 45 (20 years).
Total Investment: Rs 12,00,000
Maturity Amount (at 12 per cent annual return): Estimated Rs 50,00,000
Investor B: Starts investing Rs 5,000 per month at age 35 and continues till age 55 (20 years).
Total Investment: Rs 12,00,000
Maturity Amount (at 12 per cent annual return): Estimated Rs 28,00,000
By starting 10 years earlier, Investor A earns Rs 22,00,000 more.
SIP: Calculation condition
Target corpus: Rs 7 crore
Monthly investment: Rs 15,000
Annualised return: 12 per cent
How long it will take to create a corpus of Rs 7 crore
It will approximately take 33 years to generate Rs 7 crore.
How much can Rs 15,000 SIP build in 10 years?
The investment amount will be Rs 18,00,000, the capital gains will be Rs 16,85,086, and the estimated retirement corpus will be Rs 34,85,086.
How much can Rs 15,000 SIP build in 20 years?
The investment amount will be Rs 36,00,000, the capital gains will be Rs 1,13,87,219, and the estimated retirement corpus will be Rs 1,49,87,219.
How much can Rs 15,000 SIP build in 30 years?
The investment amount will be Rs 54,00,000, the capital gains will be Rs 4,75,48,707, and the estimated retirement corpus will be Rs 5,29,48,707.
How much can Rs 15,000 SIP build in 33 years?
The investment amount will be Rs 59,40,000, the capital gains will be Rs 7,04,69,971, and the estimated retirement corpus will be Rs 7,64,09,971.
SIP Returns: What You Need to Know
It’s important to remember that SIP is a market-linked scheme, so returns are not guaranteed.
12% Return is Estimate
The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
How much can Rs 15,000 SIP build in 10 years if annulised return is 13%?
The investment amount will be Rs 18,00,000, the capital gains will be Rs 19,00,210, and the estimated retirement corpus will be Rs 37,00,210.
How much can Rs 15,000 SIP build in 10 years if annulised return is 14%?
The investment amount will be Rs 18,00,000, the capital gains will be Rs 21,31,371, and the estimated retirement corpus will be Rs 39,31,371.
How much can Rs 15,000 SIP build in 10 years if annulised return is 15%?
The investment amount will be Rs 18,00,000, the capital gains will be Rs 23,79,859, and the estimated retirement corpus will be Rs 41,79,859.