Power of Compounding: How big can Rs 10,000 monthly SIP grow 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.
Everyone wants their money to grow, but their approach often varies. Some aim for quick returns, while others prefer a gradual, systematic path to wealth. Building wealth takes time, and compounding plays a vital role in this journey. Let’s see how much investors can accumulate with a Rs 10,000 monthly SIP over 20, 30, and 40 years.
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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 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 big a 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 big a 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 big a 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 big a 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.