Power of Compounding: How much money do you need to invest in monthly SIP to accumulate Rs 5 crore retirement corpus if started investing at 30? See calculations with exaples

In this article, we will discuss how much you need to invest in a monthly SIP to accumulate a Rs 5 crore corpus even if you started investing at the age of 30.

SIP, or systematic investment plan, is a disciplined approach to mutual fund investing that involves investing a certain amount of money every month. SIPs are a wonderful alternative for investors who wish to save for retirement, build wealth, or support schooling.

If you are going through some financial issues, you can adjust the amount too as per your budget.

SIPs can let your money grow tremendously over time due to compounding interest. 

SIPs allow you to purchase more units when the net asset value (NAV) is low and fewer units when the NAV is high.

Since your money gets automatically deducted, it makes you to invest regularly.

When you apply for one or more SIP plans, the payment is automatically deducted from your bank account and invested in the mutual funds you choose at the set time interval. At the end of the day, you will be awarded units of mutual funds based on their NAV.

• Top-up SIP
• Flexible SIP
• Perpetual SIP 

NAV is the price at which the investors buy or sell mutual fund units.

Monthly SIP: Rs 14,250
Annual return: 12%
Duration: 30 years
Total investment in 30 years: Rs 51,30,000
Maturity amount: 5,03,01,271

Disclaimer: Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.