Power of Compounding: In how many years your Rs 22,222 monthly investment will grow to Rs 10 crore, Rs 11 crore, Rs 12 crore corpus?
SIP Investment Strategy: For a financially safe and secure post-retirement life, it is important for everyone to start saving and investing a portion of their salary or money. If you want to accumulate a significant corpus for your retirement, then an SIP (Systematic Investment Plan) mutual fund can be one of the best options for you in today’s market. It offers the flexibility to invest monthly, quarterly, or annually, based on your capacity.
In this write-up, we will show through calculations how many years it will take for a monthly investment of Rs 22,222 to grow into a corpus of Rs 10 crore, Rs 11 crore, or Rs 12 crore.
Assuming an Annualised Return of 12%
We are assuming an average annual return rate of 12 per cent for all the calculations below.
In how many years your Rs 22,222 monthly investment will grow to Rs 10 crore?
As per the calculations, you will need to invest in SIP for 32 years to build a corpus of Rs 10 crore.
Rs 22,222 Monthly SIP Investment: Calculations to Build Rs 10 Crore in 32 Years
Total Investment: Rs 85,33,248
Expected Capital Gain: Rs 9,16,72,350
Total Corpus Received: Rs 10,02,05,598
In how many years your Rs 22,222 monthly investment will grow to Rs 11 crore?
To build a corpus of Rs 11 crore, you will need to invest in SIP for 33 years, shows calculation.
Rs 22,222 Monthly SIP Investment: Calculations to Build Rs 11 Crore in 33 Years
Total Investment: Rs 87,99,912
Expected Capital Gain: Rs 10,43,98,913
Total Corpus Received: Rs 11,31,98,825
In how many years your Rs 22,222 monthly investment will grow to Rs 12 crore?
As per the calculations, to build a corpus of Rs 12 crore, you will need to invest in SIP for 34 years.
Rs 22,222 Monthly SIP Investment: Calculations to Build Rs 12 Crore in 34 Years
Total Investment: Rs 90,66,576
Expected Capital Gain: Rs 11,87,73,343
Total Corpus Received: Rs 12,78,39,919
Important Point to Know While Investing in SIP
It’s important to remember that SIP is a market-linked scheme, so returns are not guaranteed. The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
See Examples-
Let's look at an example: If the annualised return is 13 per cent and 14 per cent, how soon can you reach a Rs 10 crore corpus target with a Rs 22,222 SIP investment -
In how many years your Rs 22,222 monthly investment will grow to Rs 11 crore if annualised return is 13%?
According to the calculations, you will need to invest in SIP for 31 years to build a retirement corpus of Rs 11 crore.
In how many years your Rs 22,222 monthly investment will grow to Rs 11 crore if annualised return is 14%?
As per the calculations, you will need to invest in SIP for 29 years to build a retirement corpus of over Rs 10,71,92,733. While in 30 years, your corpus will reach to Rs 12,34,88,890.
In how many years your Rs 22,222 monthly investment will grow to Rs 11 crore if annualised return is 15%?
With 15 per cent annualised return, you will need to invest in SIP for 28 years to build a retirement corpus of Rs 11,51,49,654.