Power of Compounding: What will be your earnings in 20 years after investing 10% of your Rs 30,000 salary monthly?
Discover how investing 10% of your Rs 30,000 salary every month in a Step-Up SIP can grow your wealth through compounding. Learn the benefits of long-term investments and systematic saving strategies.
The power of compounding can significantly boost your wealth when you invest consistently. By following the 10% investment rule and using a Step-Up SIP, you can steadily increase your monthly investment and accelerate returns. This guide explains how investing just Rs 3,000 each month, with a 10% annual step-up and a 12% return rate, can grow into Rs 59.66 lakh over 20 years. Learn how to make the most of systematic investments and plan for your financial future.
Minimum 10% investment rule for long-term wealth building
What is the 10% Investment Rule?
The rule advises that individuals should invest at least 10% of their income each month towards long-term investments.
The rule advises that individuals should invest at least 10% of their income each month towards long-term investments.
Annual increase in investment
It's recommended to increase the amount invested by 10% each year, enhancing potential returns over time through disciplined saving.
Understanding Step-Up SIP: Your gateway to higher returns
What is a Step-Up SIP?
A Systematic Investment Plan (SIP) allows you to invest small amounts in mutual funds regularly. With a Step-Up SIP, you can automate increasing your SIP contribution at intervals.
How Does Step-Up SIP Work?
You start with a fixed monthly investment and gradually raise your contributions, helping maximize returns.
Benefits of Step-Up SIP
It adapts to your growing income and helps accelerate wealth creation, especially when combined with the power of compounding.
How to estimate your returns using a Step-Up SIP calculator?
Why Use a Step-Up SIP Calculator?
The calculator helps estimate potential returns based on your monthly contribution, step-up percentage, expected return rate, and investment horizon
Example of Return Estimation
By investing 10% of your salary each month, starting with Rs 3,000 and increasing it annually by 10%, you can see the long-term impact of your investment decisions.
How much will you earn in 20 years by investing 10% of your Rs 30,000 salary?
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Monthly Investment: Rs 3,000
- Annual Step-up: 10%
- Expected Return Rate: 12%
- Time Period: 20 years
- Total Invested Amount: Rs 20,61,900
- Estimated Value of Investment: Rs 39,04,715
- Final Total Value After 20 Years: Rs 59,66,615
Monthly Investment: Rs 3,000