Power of Compounding: How long it will take to build 6 crore corpus with Rs 6,000, Rs 8,000 and Rs 10,000 monthly investments
If you have just started earning, it’s a great idea to start investing, even if your income is not much. Investing a small amount as Rs 6,000 a month can make a big difference. Over time, it can help you save up to Rs 6 crore for your retirement. Let’s find out how long it will take to build Rs 6 crore by investing monthly amounts like Rs 6,000, Rs 8,000, or Rs 10,000 in Systematic Investment Plan (SIP).
Never underestimate the power of saving and investing, no matter how little you earn. Even small investments can grow into large corpus over time. Today, let’s talk about how long it will take to create Rs 6 crore for retirement by investing Rs 6,000, Rs 8,000, or Rs 10,000 every month in a mutual fund SIP.
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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 compounding?
You might remember learning about compound interest in school, where you solved problems to find the rate of interest, principal amount, or time. But who knew these concepts would be so important for growing your money as an investor? The power of compounding is simple: it helps your money grow not just on what you initially invested but also on returns it has already earned. This process continues over time, helping grow your wealth.
Introduction to SIP
SIP stands for a Systematic investment plan that allows the investors to invest a fixed amount in a mutual fund scheme at regular intervals.
Magic of starting early
Starting early gives your investments more time to grow. The longer your money stays invested, the more it benefits from compounding.
How do SIPs work?
SIPs allow investors to invest a fixed amount regularly, making it a disciplined approach to investing.
Discipline and patience are key
Skipping investments or withdrawing too soon can break the compounding cycle and reduce the final corpus. Thus, let your investments stay untouched for maximum growth.
Power of compounding: Calculation conditions for Rs 6 crore corpus with Rs 6,000 monthly SIP
Target corpus: Rs 6 crore
Time period: 39 years
Annualised return: 12 per cent (per annum)
Monthly SIP Investment: Rs 6,000
How long it will take to build Rs 6 crore corpus with Rs 6,000 monthly SIP at 12 per cent annualised return
It will approximately take 39 years for an individual to build an estimated amount of Rs 6,32,02,062. During that time, the invested amount will be around Rs 28,08,000, and the estimated capital gains will be Rs 6,03,94,062.
Power of compounding: Calculation conditions for Rs 6 crore corpus with Rs 8,000 monthly SIP
Target corpus: Rs 6 crore
Time period: 37 years
Annualised return: 12 per cent (per annum)
Monthly SIP Investment: Rs 8,000
How long it will take to build Rs 6 crore corpus with Rs 8,000 monthly SIP at 12 per cent annualised return
It will approximately take 37 years for an individual to build an estimated amount of Rs 6,61,96,091. During that time, the invested amount will be around Rs 35,52,000, and the estimated capital gains will be Rs 6,26,44,091.
Power of compounding: Calculation conditions for Rs 6 crore corpus with Rs 10,000 monthly SIP
Target corpus: Rs 6 crore
Time period: 35 years
Annualised return: 12 per cent (per annum)
Monthly SIP Investment: Rs 10,000
How long it will take to build Rs 6 crore corpus with Rs 10,000 monthly SIP at 12 per cent annualised return
It will approximately take 35 years for an individual to build an estimated amount of Rs 6,49,52,691. During that time, the invested amount will be around Rs 42,00,000, and the estimated capital gains will be Rs 6,07,52,691.