Power of Compounding: What happens when you invest Rs 15,000 every month for 20, 30, and 40 years
By investing a small amount regularly over a long period, one can accumulate a larger corpus than someone who invests a larger sum for a shorter duration. The power of compounding works best with time, making early, consistent investments is important for long-term financial growth. Let’s find out what will happen to your corpus in 20, 30, and 40 years if you invest Rs 15,000 in a monthly Systematic Investment Plan (SIP).
Who doesn’t want their money to grow? While everyone shares this goal, the approach to achieving it may be different. Some prefer rapid growth, while others choose a more systematic, steady path. Building wealth takes time, and the power of compounding is a very important factor in this process. Let’s explore how much corpus one can create with Rs 15,000 monthly SIP over 20, 30, and 40 years.
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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 Power of Compounding
Compounding means you earn money not just on your original amount, but also on the money that has already been added. To make the most of this, it’s important to invest for the long term. The longer your money is invested, the more it grows over time.
Power of compounding with monthly SIP
When compounding is combined with a Systematic Investment Plan (SIP), it can help you grow a large retirement corpus, even with a small monthly investment.
Start early
Starting early gives investors the chance to build a larger retirement corpus. The longer you invest, the more you can benefit from the power of compounding.
Stay invested
Investors should avoid withdrawing their money before reaching their financial goals until and unless necessary. Taking out money means missing out on the growth it could have gained over time.
Benefits of SIP
Flexibility: Adjust investments according to your budget
Power of Compounding: Helps investor grow their money significantly
Automatic deductions
Investment conditions
Here, we’ll look at how much corpus investors can build with Rs 15,000 monthly SIP over 20, 30, and 40 years, assuming annualised return of 12% on their investments.
How much corpus can Rs 15,000 monthly SIP generate in 20 years?
The estimated amount in 20 years will be Rs 1,49,87,219. During that time, the invested amount will be Rs 36,00,000, and capital gains will be around Rs 1,13,87,219.
How much corpus can Rs 15,000 monthly SIP generate in 30 years?
The estimated amount in 30 years will be Rs 5,29,48,707. During that time, the invested amount will be Rs 54,00,000, and capital gains will be around Rs 4,75,48,707.
How much corpus can Rs 15,000 monthly SIP generate in 40 years?
The estimated amount in 40 years will be Rs 17,82,36,304. During that time, the invested amount will be Rs 72,00,000, and capital gains will be around Rs 17,10,36,304.
What happens when you invest Rs 15,000 every month for 20, 30, and 40 years
If one invests Rs 15,000 in monthly SIP for the following years, the accumulated corpus can be around the mentioned amount. Take a look!
In 20 years: Rs 1,49,87,219
In 30 years: Rs 5,29,48,707
In 40 years: Rs 17,82,36,304