Power of Compounding: How much corpus can Rs 10,000 monthly SIP generate in 20, 30, and 40 years
Early investment plays a crucial role in building a large retirement corpus. As an investor, if you start investing a small amount monthly and continue it for a long duration, there is a high chance that your corpus can be larger than someone starting with a large amount for a short duration.
Who does not like their money to grow? Everyone does, but their process might differ. Some may want their money to grow quickly, while others plan for it to grow in a systematic way. It may take time to build wealth, and the power of compounding plays a key role in it. Thus, let’s understand how much corpus investors can create with Rs 10,000 monthly SIP in 20 years, 30 years, and 40 years.
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Power of Compounding
The power of compounding is a process to generate earnings not only on the principal amount but also on the accumulated interest earned over time. To maximise the power of compounding, it's important to invest for the long term. The longer your money is invested, the more time it gets to compound, and the greater the growth potential.
Power of compounding with monthly SIP
When compounding is combined with a Systematic Investment Plan (SIP), it can help you build a substantial retirement corpus even with a relatively small monthly investment.
Start early
An early start can help investors build a large corpus post retirement. The key is that the longer you invest, the more you can profit from compounding.
Stay invested
Investors should not redeem their investments until they've reached their financial goal. Each time they withdraw, the benefit of compounding decreases.
Benefits of SIP
Flexibility: Adjust investments according to your budget
Power of Compounding: Grow your money significantly
Disciplined Investing: Automatic deductions
Investment conditions
Here, we will discuss how much corpus investors can generate with Rs 10,000 monthly SIP investment for 20, 30, and 40 years. Each will get annualised SIP returns of 12 per cent on their investments.
How much corpus can Rs 10,000 monthly SIP generate in 20 years?
With a monthly SIP of Rs 10,000, investors can generate approximately Rs 99,91,479 retirement corpus with 12 per cent annualised returns. During that time, the estimated capital gains will be Rs 75,91,479.
How much corpus can Rs 10,000 monthly SIP generate in 30 years?
With a monthly SIP of Rs 10,000, investors can generate approximately Rs 3,52,99,138 retirement corpus. During that time, the estimated capital gains will be Rs 3,16,99,138.
How much corpus can Rs 10,000 monthly SIP generate in 40 years?
With a monthly SIP of Rs 10,000, investors can generate approximately Rs 11,88,24,202 retirement corpus. During that time, the estimated capital gains will be Rs 11,40,24,202.