SIP Returns: How your Rs 10,000 and Rs 15,000 monthly SIPs can reach Rs 1.7 crore and Rs 2.55 crore corpus; understand it through calculations
Unlock the power of monthly savings and generate a retirement corpus worth crores. How just mere Rs 10,000 and Rs 15,000 monthly SIPs can help you generate a retirement corpus up to Rs 2.56 crore. Check out to learn how.
SIP (Systematic Investment Plan) is a flexible option for investors to invest a fixed amount regularly, primarily in mutual funds that helps investors build wealth over time. It comes with various benefits that allow investors to invest a predetermined sum at a set interval. The interval could be daily, weekly, monthly, and yearly. SIPs are suited for long-term financial goals, as they leverage the power of compounding.
What is SIP?
SIP is a systematic approach to investing a predetermined amount in mutual funds at regular intervals (usually every month). The installment amount could be as little as INR 100 a month. However, most mutual fund schemes offer Rs 500 as the minimum SIP investment.
How SIP works?
You can choose a mutual fund and a date to invest at regular intervals, such as monthly. Each installment buys a certain number of net asset value (NAV) based on the prevailing market price. It means, the investor acquires more units when prices are low and fewer when prices are high. As the investment grows, the power of compounding helps boost returns, especially when investments are held for the long term.
How you can build retirement corpus through SIP
Building a retirement corpus through a SIP involves consistent, long-term investing that takes advantage of compounding and market growth. By investing a fixed amount monthly you can accumulate net asset value (NAV) of a mutual fund, which grows over time. By staying committed to your SIP you can build a substantial retirement corpus over the years.
Start investing early
Start early to allow your investments the maximum time to compound, and gradually increase your SIP amount as your income grows. Choose equity mutual funds for higher potential returns over the long term, as they tend to outperform other asset classes.
Benefits of SIP
The longer the SIP duration, the greater the compounding benefits. With an average annualised return of 12 per cent in equity mutual funds, SIPs offer substantial growth, exceeding many investment schemes.
Provides flexibility
SIP offers flexible investment options, allowing you to choose the investment amount and period. The interval could be daily, weekly, monthly, and yearly.
How Rs 10,000 monthly SIP can generate Rs 1.70 crore corpus
A monthly SIP of 10,000 can generate an estimated corpus of Rs 1.70 crores in around 25 years with an annualised return of 12 per cent. The invested amount in 25 years will be Rs 30,00,000, long-term capital gains Rs 1,40,22,066, and the estimated corpus will be Rs 1,70,22066.
How Rs 15,000 monthly SIP can build Rs 2.55 crore corpus
A monthly SIP of 15,000 can generate an estimated corpus of 2.55 crores in around 25 years with an annualised return of 12%. The invested amount in 25 years will be Rs 45,00,000, long-term capital gains Rs 2,10,33,099, and the estimated corpus will be Rs 2,55,33,099.