Power of Compounding: How long it will take to build Rs 4 crore corpus with Rs 7,000, Rs 9,000 and Rs 11,000 monthly investments?
Let’s find out how investing Rs 7,000, Rs 9,000, or Rs 11,000 monthly can help you build a Rs 4 crore retirement corpus. See how the power of compounding may impact your wealth in the long run.
Building wealth requires patience, discipline, and consistency. Imagine turning your monthly savings into a massive Rs 4 crore corpus. It may seem like a dream, but with consistent investments of Rs 7,000, Rs 9,000, or Rs 11,000, it’s achievable. The power of compounding helps your money grow in the long run. The earlier you start, the sooner you can reach your financial goals. In this article, we’ll explore how long it will take to build this sizeable corpus with each investment amount and how time is your greatest companion in wealth creation.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is power of compounding?
Compounding is the process through which investments generate earnings that are reinvested to generate additional earnings. The sooner you start investing, the better it is. Starting early gives you more time to see the benefits of compounding.
What is systematic investment plan (SIP)?
SIP is a process of investing in a mutual fund with a fixed amount, either daily, weekly, monthly, or yearly.
Benefits of compounding
Suitable for long-term investors
Flexibility
Encourages habit of saving at an early age
Benefits of SIP
Flexible Investment
Long term growth
Convenient
How time is greatest companion in wealth creation
Time allows your investments to grow in the long run through the power of compounding. The longer you stay invested, the more your returns generate additional returns. Early investments give your money more time to multiply, even with smaller amounts. This means you don’t just rely on your contributions but also on the growth of your returns.
Start investing early
Starting early reduces the pressure to invest large sums later and helps you achieve big financial goals like building a Rs 4 crore corpus more comfortably. In wealth creation, patience and time are just as valuable as the amount you invest.
SIP calculations
Target corpus: Rs 4 crore
Monthly investments: Rs 7,000, Rs 9,000, Rs 11,000
Annualised return: 12 per cent
How long it will take to generate Rs 4 crore with Rs 7,000 monthly SIP?
It will approximately take 34 years to achieve the target of Rs 4 crore.
From Rs 7,000 monthly SIP to Rs 4 crore at 12 per cent annualised return
The invested amount will be Rs 28,56,000. The estimated capital gains will be Rs 3,74,13,977, and the estimated retirement corpus will be Rs 4,02,69,977.
How long it will take to generate Rs 4 crore with Rs 9,000 monthly SIP?
It will approximately take 32 years to achieve the target of Rs 4 crore.
From Rs 9,000 monthly SIP to Rs 4 crore
The invested amount will be Rs 34,56,000. The estimated capital gains will be Rs 3,71,27,673, and the estimated retirement corpus will be Rs 4,05,83,673.
How long it will take to generate Rs 4 crore with Rs 11,000 monthly SIP?
It will approximately take 31 years to achieve the target of Rs 4 crore.
From Rs 11,000 monthly SIP to Rs 4 crore
The invested amount will be Rs 40,92,000. The estimated capital gains will be Rs 3,98,02,450, and the estimated retirement corpus will be Rs 4,38,94,450.