Retirement Corpus Target Rs 8 Crore: What should be your monthly SIP investment to achieve this goal in 20, 25, and 30 years? Know here

SIP investment to reach Rs 8 Crore Corpus: The Systematic Investment Plan (SIP) method is an effective way to generate a retirement corpus. However, one needs to start early to get the maximum benefits of compounding from the SIP investment.

Shaghil Bilali | Nov 07, 2024, 04:24 PM IST

SIP investment to reach Rs 8 Crore Corpus: You are a 40-year-old salaried employee who aspires to retire at 60. But you have just started your investment journey for retirement. Given rising inflation and expenses of lifestyle, liabilities, and loans, is a financially free retirement possible for you? It is not impossible, but for that, your monthly investment should be quite high, or should generate more sources of income. Had you started the investment journey 15 years ago, the same retirement corpus might have been created with much less investment. This is because the more number of years gives your investments more time to compound. You can understand more precisely with our examples of creating a Rs 8 crore retirement corpus with 20, 25, or 30 years of mutual fund SIP investments. 
Photos: Unsplash/Pixabay

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)

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How early starters get benefits

How early starters get benefits

Take the example of A and B. A starts a Rs 5,000 monthly investment at 30 years of age, and B starts at 40. Both get 12 per cent annualised returns on their investments, and each will invest till 30.
In 30 years, A invested Rs 18,00,000. Their estimated corpus in that period will be Rs 1,76,49,569.
In 20 years, B invested Rs 12,00,000. But their estimated corpus will be just Rs 49,95,740.

More example of benefits of early investing
Here, C and D set the target of Rs 5 crore corpus. C starts investing at 30 and D at 40. Both want to invest till 60, and both are expecting a 12 per cent annualised return on their investments.  
The estimated monthly SIP investment for C to achieve that target in 30 years will be Rs 14,170, and the total estimated investment will be Rs 51,01,200.
But since D has 20 years to achieve the goal, they need to invest estimated Rs 50,100 monthly and estimated Rs 1,20,24,000 overall to achieve the same target.

 

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Calculations for Rs 8 crore retirement corpus 

Calculations for Rs 8 crore retirement corpus 

We will take 20, 25, and 30 years as durations. We will calculate at 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised return.

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Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 12% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 12% return)

The estimated monthly SIP investment will be Rs 22,700.
The invested amount will be Rs 81,72,000, estimated capital gains will be Rs 7,19,57,043, and the estimated corpus will be Rs 8,01,29,043.

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Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 13% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 13% return)

The estimated monthly SIP investment will be Rs 18,100.
The invested amount will be Rs 65,16,000, estimated capital gains will be Rs 7,34,97,708, and the estimated corpus will be Rs 8,00,13,708.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 14% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 14% return)

The estimated monthly SIP investment will be Rs 14,400.
The invested amount will be Rs 51,84,000, estimated capital gains will be Rs 7,48,37,601, and the estimated corpus will be Rs 8,00,21,601.

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Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 15% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 30 years (at 15% return)

The estimated monthly SIP investment will be Rs 11,415.
The invested amount will be Rs 41,09,400, estimated capital gains will be Rs 7,59,07,702, and the estimated corpus will be Rs 8,00,17,102.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 12% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 12% return)

The estimated monthly SIP investment will be Rs 42,159.
The invested amount will be Rs 1,26,47,700, estimated capital gains will be Rs 6,73,54,698, and the estimated corpus will be Rs 8,00,02,398.

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Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 13% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 13% return)

The estimated monthly SIP investment will be Rs 35,221.
The invested amount will be Rs 1,05,66,300, estimated capital gains will be Rs 6,94,35,913, and the estimated corpus will be Rs 8,00,02,213.

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Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 14% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 14% return)

The estimated monthly SIP investment will be Rs 29,335.
The invested amount will be Rs 88,00,500, estimated capital gains will be Rs 7,12,04,192, and the estimated corpus will be Rs 8,00,04,692.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 15% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 25 years (at 15% return)

The estimated monthly SIP investment will be Rs 24,360.
The invested amount will be Rs 73,08,000, estimated capital gains will be Rs 7,26,92,036, and the estimated corpus will be Rs 8,00,00,036.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 12% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 12% return)

The estimated monthly SIP investment will be Rs 80,069.
The invested amount will be Rs 1,92,16,560, estimated capital gains will be Rs 6,07,84,215, and the estimated corpus will be Rs 8,00,00,775.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 13% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 13% return)

The estimated monthly SIP investment will be Rs 69,838.
The invested amount will be Rs 1,67,61,120, estimated capital gains will be Rs 6,32,39,646, and the estimated corpus will be Rs 8,00,00,766.

 

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Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 14% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 14% return)

The estimated monthly SIP investment will be Rs 60,075.
The invested amount will be Rs 1,45,86,000, estimated capital gains will be Rs 6,54,14,945, and the estimated corpus will be Rs 8,00,00,945.

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Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 15% return)

Monthly SIP investment to achieve Rs 8 cr corpus in 20 years (at 15% return)

The estimated monthly SIP investment will be Rs 52,773.
The invested amount will be Rs 1,26,65,520, estimated capital gains will be Rs 6,73,35,972, and the estimated corpus will be Rs 8,00,01,492.

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