Power of Compounding: How long will it take to build Rs 4 crore corpus with Rs 5,000, Rs 10,000, and Rs 15,000 monthly investment
Early investment has its benefits. It gives you more time to invest compared to a person who starts near their retirement. With just Rs 5,000, Rs 10,000, or Rs 15,000 monthly systematic investment plan (SIP) investment, one can generate a retirement corpus of Rs 4 crore. Check how long it can take to achieve that financial goal.
If you have a monthly income, then start saving some money and investing it in an investment scheme. Starting with a small amount can work wonders if you give time to your investment to witness compound growth. Today, we will discuss how many years will it take to build an estimated corpus of Rs 4 crore by investing Rs 5,000, Rs 10,000, and Rs 15,000 monthly in a mutual fund SIP(s).
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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)
Power of compounding
The knowledge of how the power of compounding works can not only enable investors to build a large corpus in the long run, it can also help them achieve their financial goals if they plan their investment wisely. The power of compounding is a process of adding interest on interest, i.e. the amount of money you invest will generate earnings from both the initial principal amount and the accrued earnings from preceding compounding periods.
What is systematic investment plan (SIP)
A systematic Investment Plan (SIP) is a method of investment offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals like daily, weekly, monthly, quarterly, half-yearly, or yearly. The SIP amount could be as little as Rs 100 a month. It’s convenient as you can give your bank standing instructions to debit the amount every month.