Power of Compounding: How large corpus can Rs 15,000 monthly SIP generate in 20, 30, and 40 years?
Beginning early can lead to better results later. For example, if you start investing early your chances of achieving a sizeable corpus at the end of the investment are more than those who start late with a higher investment amount. Even small investments can make a big difference. Thus, let’s find out how big corpus can Rs 15,000 monthly SIP generate in 20,30, and 40 years.
Everyone wants their money to grow and seeing their money grow brings a different level of happiness and satisfaction. The power of compounding can help one live this moment and achieve their financial goals. The longer the investment period, the more time your money has to grow. Therefore, let’s understand how a systematic investment plan (SIP) and compounding can help one achieve their target corpus. Here, we will take an example of Rs 15,000 monthly SIP investment and find out how big corpus it can create in 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)
Read more: Power of Rs 10,000 SIP: Can one achieve Rs 6 crore corpus with Rs 10,000 monthly investment?
Power of compounding in SIP
The power of compounding is a method to generate earnings not only on the principal amount but also on the accumulated growth during the investment period.
SIP in mutual fund
A systematic investment plan (SIP) is a way of investing a fixed amount in a mutual fund SIP. One can start with a small amount of Rs 100.
Compounding effects
To benefit more from 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, resulting in greater growth potential.
Early investment
An early start can help the individual build a sizeable corpus post retirement. The key is that the longer you invest, the more you can profit from compounding.
What are benefits of SIP?
Flexibility: Adjust investments according to your budget
The power of Compounding lets your money grow gradually with consistent investment
Automatic deductions
Consistent and disciplined investment
Staying consistent and disciplined with your investment can help you in the long run. The longer they stay invested, the more they can benefit from compounding.
SIP calculation
Monthly investment: Rs 15,000
Annualised return: 12 per cent
Time period: 20, 30, and 40 years
How much corpus can Rs 15,000 monthly SIP generate in 20 years?
During the investment period, the invested amount will be Rs 36,00,000. The capital gains will be Rs 1,13,87,219, and the estimated retirement corpus will be Rs 1,49,87,219.
How much corpus can Rs 15,000 monthly SIP generate in 30 years?
The investment amount will be Rs 54,00,000. The capital gains will be Rs 4,75,48,707, and the estimated retirement corpus will be Rs 5,29,48,707.
How much corpus can Rs 15,000 monthly SIP generate in 40 years?
The investment amount will be Rs 72,00,000. The capital gains will be Rs 17,10,36,304, and the estimated retirement corpus will be Rs 17,82,36,304.
How large corpus can Rs 15,000 monthly SIP generate in 20, 30, and 40 years
Corpus in 20 years: Rs 1,49,87,219
Corpus in 30 years: Rs 5,29,48,70
Corpus in 40 years: Rs 17,82,36,304