SIP Investment Strategy: How many years it will take to generate Rs 2 crore corpus with Rs 5,000, Rs 10,000 and Rs 15,000 monthly SIP

Priya Vishwakarma | Oct 16, 2024, 03:59 PM IST

Power of Compounding: For a long-term disciplined investment, people mostly opt for Systematic investment plans (SIPs). It is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests the fixed amount of his/her choice at fixed intervals.

1/10

SIP: Power of Compounding

SIPs come with a monthly compounding benefit, meaning that the return earned each month is added to the principal. This new total is then used to calculate the return for the next period.

2/10

Rs 5,000, Rs 10,000 and Rs 15,000 monthly SIP

So, given the ability of the instrument to help you in your investment journey and help build you wealth, here is a take on how Rs 5,000, Rs 10,000, and Rs 15,000 monthly SIP can help you attain a corpus of Rs 2 crore.

3/10

Starts investing early

But herein we have assumed that investors start their investment journey early in life and attain the retirement corpus by the retirement age of 60 years.

4/10

Rs 5,000 monthly SIP (assuming 13 per cent annualised return)

The investor will take 30 years to compound his/her monthly SIP investment of Rs 5000 to around Rs 2,21,03,234.

5/10

Rs 5,000 monthly SIP: Total investment and return in 30 years

According to a SIP calculator, the total investment in 30 years would amount to Rs 18,00,000, resulting in a long-term capital gain of Rs 2,03,03,234.

6/10

Rs 10,000 monthly SIP (assuming 13 per cent annualised return)

Similarly, Rs 10,000 monthly SIP will compound to Rs 2,27,14,350 in a matter of 25 years.

7/10

Rs 10,000 monthly SIP: Total investment and return in 25 years

According to a SIP calculator, the total investment in 25 years would amount to Rs 30,00,000, resulting in a long-term capital gain of Rs 1,97,14,350.

8/10

Rs 15,000 monthly SIP (assuming 13 per cent annualised return)

With a monthly SIP of Rs 15,000, investors will be able to build more wealth than before in just 22 years. His/her investment increased to approximately Rs 2,26,66,787.

9/10

Rs 15,000 monthly SIP: Total investment and return in 22 years

According to a SIP calculator, the total investment in 22 years would amount to Rs 39,60,000, resulting in a long-term capital gain of Rs 1,87,06,787.

10/10

Financial corpus

So, one can gain bountifully even with small SIPs parked at judiciously and in a disciplined way. One can also top-up his SIP amount with increasing income for an early attainment of the financial corpus.

Next
Gallery