Power of Rs 3,000 SIP: Can one achieve Rs 3 crore corpus with just Rs 3,000 monthly investment?
Even a small amount can do wonders. Here, we will understand how an individual can build estimated retirement corpus of Rs 3 crore by investing Rs 3,000 monthly in a systematic investment plan (SIP) as well as with a Rs 3,000 step up monthly SIP.
With SIPs, an investment of even Rs 3,000 a month can potentially grow to an estimated Rs 3 crore in the long term. Investors can invest in mutual fund SIP by contributing small amounts at regular intervals. They can start with as little as Rs 100 and choose daily, weekly, monthly, half-yearly, or yearly investment cycle. Here, we will discuss how one can achieve a Rs 3 crore corpus goal with just Rs 3,000 monthly SIP investment in mutual funds.
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(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
What is SIP?
SIP is a process of investing in mutual funds by contributing a predetermined amount at regular intervals. The investor has to set up their SIP, once it’s done their investment becomes automated. It means, their chosen amount will be automatically transferred to their selected mutual fund on the specified date.
Benefits of investing through mutual fund SIP
Affordable
Flexible
Beginner friendly
Things to consider before investing in SIPs
Financial goals
Risk appetite
Consistency
Starting early
Being a young investor can be the smartest move to make. The sooner you start investing, the more time your wealth gets to grow.
How soon can investors reach Rs 3 crore corpus?
Monthly SIP: Rs 3,000
Target corpus: Rs 3 crore
At 12% return: Approximately 39 years.
Power of Rs 3,000 monthly SIP: Corpus in 10 years
We will do the calculation to find out what will be the retirement corpus in 10 years if we invest Rs 3,000 in monthly SIP. In each case, we will take 12 per cent annualised return.
In 10 years, the investment amount through the monthly SIP will be Rs 3,60,000, the estimated capital gains will be Rs 3,37,017, and the estimated retirement corpus will be Rs 6,97,017.
Power of Rs 3,000 monthly SIP: Corpus in 20 years
In 20 years, the investment amount through the monthly SIP will be Rs 7,20,000, the estimated capital gains will be Rs 22,77,444, and the estimated retirement corpus will be Rs 29,97,444.
Power of Rs 3,000 monthly SIP: Corpus in 30 years
In 30 years, the investment amount through the monthly SIP will be Rs 10,80,000, the estimated capital gains will be Rs 95,09,741, and the estimated retirement corpus will be Rs 1,05,89,741.
Power of Rs 3,000 monthly SIP: Corpus in 39 years
In 39 years, the investment amount through the monthly SIP will be Rs 14,04,000, the estimated capital gains will be Rs 3,01,97,031, and the estimated retirement corpus will be Rs 3,16,01,031.
How soon one can achieve Rs 3 crore corpus with step up SIP
To achieve the target of Rs 3 crore retirement corpus, it will approximately take 35 years with a Rs 3,000 monthly step up SIP, where the annual step up will be 5 per cent. The invested amount in 35 years will be Rs 32,51,531, estimated capital gains will be Rs 2,66,57,298, and the estimated retirement corpus will be Rs 2,99,08,829.