Retirement Planning via SIP: In how many years your Rs 13,000 monthly investment can reach to Rs 9 crore target?
Retirement Planning via SIP: Are you worried about rising inflation and wondering how to manage your post-retirement expenses? If yes, then investing in a Systematic Investment Plan (SIP) may help. It is an investment option that helps investors achieve long-term financial goals, such as building a substantial corpus for retirement, marriage, education, etc. In this write-up, we will show the calculations of how soon a monthly SIP of Rs 13,000 can help reach the Rs 9 crore corpus target.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is an SIP Mutual Fund?
A SIP is a disciplined way to invest a fixed amount in mutual funds at regular intervals—monthly, quarterly, or yearly.
Start Early for Better Returns
One of the key benefits of investing in an SIP is starting early. The earlier you start, the more time your money has to grow.
Power of Compounding
SIP leverages the power of compounding and has the potential for market growth over time.
Assuming a 12% Annualised Return
For this calculation, we are assuming an annualized return of 12 per cent.
How Many Years Will It Take for Your Rs 13,000 Monthly Investment to Reach the Rs 9 Crore Target?
To build a corpus of Rs 9 crore, you need to invest in an SIP for at least 36 years.
Total Investment in 36 Years
If you invest Rs 13,000 monthly for 36 years, your total investment will amount to Rs 56,16,000.
Estimated Capital Gain in 36 Years
With an annualised return of 12%, the estimated capital gain could be around Rs 8,96,97,934.
Total Amount After 36 Years
By adding the initial investment to the capital gain, the total corpus could grow to approximately Rs 9,53,13,934 after 36 years.
Calculations
- Invested Amount: Rs 56,16,000
- Capital Gain: Rs 8,96,97,934
- Total Value: Rs 9,53,13,934
Important Points to Remember
It’s important to understand that SIPs are market-linked investments, meaning that returns are not guaranteed.
12% Return Is an Estimate
The 12 per cent return mentioned in the above calculations is an estimate, and actual returns may vary depending on market conditions.
