Power of Compounding: How soon will monthly SIP of Rs 8,000, Rs 12,000, and Rs 15,000 reach Rs 6 crore corpus target?
Let’s find out how power of compounding can help one achieve Rs 6 crore corpus with monthly SIPs of Rs 8,000, Rs 12,000, and Rs 15,000.
A small step today can lead to big results tomorrow. If you’re aiming to build Rs 6 crore, starting a monthly systematic investment plan (SIP) of Rs 8,000, Rs 12,000, or Rs 15,000 can make it possible. The secret is to start as early as you can, stay consistent, and let your money grow over time. In this article, we’ll break down how long it might take for these monthly SIP amounts to help you reach your Rs 6 crore goal.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Understanding systematic investment plan (SIP)
SIP allows the investors to invest a fixed amount in a mutual fund scheme at regular intervals. One can start with a minimum amount of Rs 100.
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.
Understanding power of compounding
The power of compounding is like planting a tree and nurturing it until it is ready to bear fruit. Similarly in compounding, your small investment grows bigger and bigger with consistent and disciplined investment strategy. The earlier you start and the longer you stay invested, the more your money grows.
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
Power of Compounding: Calculation Conditions
Here, we will consider 12 per cent anuualised return on Rs 8,000, Rs 12,000, and Rs 15,000.
How soon will monthly SIP of Rs 8,000 build Rs 6 crore at 12 per cent annualised return
It will approximately take 37 years for an individual to reach the target of Rs 6 crore with Rs 8,000 monthly SIP.
What will be the estimated amount in 37 years with Rs 8,000 monthly SIP?
The estimated corpus will be 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.
How soon will monthly SIP of Rs 12,000 build Rs 6 crore?
It will approximately take 33 years for an individual to reach the target of Rs 6 crore with Rs 12,000 monthly SIP.
What will be the estimated amount in 33 years with Rs 12,000 monthly SIP?
The estimated corpus will be Rs 6,11,27,977. During that time, the invested amount will be around Rs 47,52,000, and the estimated capital gains will be Rs 5,63,75,977.
How soon can monthly SIP of Rs 15,000 build Rs 6 crore?
It will approximately take 31 years for an individual to reach close to the target of Rs 6 crore with Rs 15,000 monthly SIP.
What will be the estimated amount in 31 years with Rs 15,000 monthly SIP?
The estimated retirement corpus will be Rs 5,98,56,068. During that time, the invested amount will be around Rs 55,80,000, and the estimated capital gains will be Rs 5,42,76,068.