Power of Compounding: How soon will monthly SIP of Rs 7,000, Rs 9,000, and Rs 11,000 reach Rs 6 crore corpus target?
Let’s find out how the power of compounding can help one achieve Rs 6 crore corpus with monthly SIPs of Rs 7,000, Rs 9,000, and Rs 11,000.
Even a small amount can do wonders. If your goal is to build Rs 6 crore corpus, a monthly SIP of Rs 7,000, Rs 9,000, and Rs 11,000 can help you get there. The key is to start early, stay disciplined, and give your investments enough time to grow. In this article, we’ll explore how long it would take for a monthly Systematic Investment Plan (SIP) of Rs 7,000 and the rest of the amount mentioned above to reach Rs 6 crore retirement corpus.
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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 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.
Investment in SIP
The investment in SIP can be done according to the choice of the investor’s investment capacity- daily, weekly, monthly, quarterly, half-yearly, or yearly.
Start early
Starting investing early can help individuals meet their financial goals on time. It can be more advantageous for investors than starting it late.
Benefits of compounding
Encourages long-term financial goal planning
Investors savings can grow faster
Reduces risk
Disciplined approach
A disciplined investment with a consistent contribution can help investors create a large retirement corpus with the effect of the power of compounding.
From Rs 7,000 monthly SIP to Rs 6 crore corpus at 12 per cent annualised return: Calculations
The estimated retirement corpus will be Rs 6,53,57,151. During this time, the estimated invested amount will be Rs 31,92,000, and the estimated capital gains will be Rs 6,21,65,151.
How many years will it take to achieve the target of Rs 6 crore retirement corpus with Rs 7,000 monthly SIP?
It will take approximately 38 years to achieve the target of Rs 6 crore retirement corpus at 12 per cent annualised return.
From Rs 9,000 monthly SIP to Rs 6 crore corpus at 12 per cent annualised return: Calculations
The estimated retirement corpus will be Rs 6,59,86,570. During this time, the estimated invested amount will be Rs 38,88,000, and the estimated capital gains will be Rs 6,20,98,570.
How many years will it take to achieve the target of Rs 6 crore retirement corpus with Rs 9,000 monthly SIP?
It will take approximately 36 years to achieve the target of Rs 6 crore retirement corpus at 12 per cent annualised return.
From Rs 11,000 monthly SIP to Rs 6 crore corpus at 12 per cent annualised return: Calculations
The estimated retirement corpus will be Rs 6,32,81,393. During this time, the estimated invested amount will be Rs 44,88,000, and the estimated capital gains will be Rs 5,87,93,393.
How many years will it take to achieve the target of Rs 6 crore retirement corpus with Rs 11,000 monthly SIP?
It will take approximately 34 years to achieve the target of Rs 6 crore retirement corpus at 12 per cent annualised return.