Retirement Planning: Can you build Rs 4.9 cr corpus with Rs 7,000 monthly SIP investment; see estimates for 12%, 13%, 14% and 15% annualised returns
Retirement Planning: Whether you are in your 20s, 30s, or 40s, it is never too late to start planning for your retirement. You can begin building your post-retirement corpus at any stage of your career. However, to build a larger corpus with a smaller monthly investment, it is advisable to start as early as possible. The sooner you start investing, the more time your money will have to grow.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
Confused about where to invest?
If you're unsure where to invest to build a substantial retirement corpus, then you may consider opting for a mutual fund SIP (Systematic Investment Plan). By consistently investing a portion of your salary into a SIP, you can grow your wealth over time and potentially become a crorepati.
Retirement Planning: How much corpus can you build with a Rs 7,000 monthly SIP?
If you aim to build a substantial retirement corpus in 30 years with a monthly SIP of Rs 7,000, it’s crucial to approach this goal strategically. Remember that the amount of money you can accumulate depends on the annualised return rate of your SIP. Since SIPs are market-linked, returns are not guaranteed and may vary over time.
Retirement Planning: Calculate returns at 12%, 13%, 14%, and 15% annualised rates
The 12% annualised return is an average return for equity funds, and actual returns can vary based on market conditions. In this write-up, we’ll calculate returns at 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised rates.
Retirement Planning: Total amount invested in 30 years
Let’s assume you’re investing Rs 7,000 every month in an SIP for 30 years. Now as per the calculation, your total investment over 30 years would be Rs 25,20,000.
Retirement Planning: Calculations for 12%, 13%, 14%, and 15% annualised rates
Now, let’s calculate the capital gain and total amount received at 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised returns:
How much money you can build with Rs 7,000 monthly SIP investment: If annualised return is 12%
With an annualised return of 12 per cent, the estimated capital gain could be around Rs 2,21,89,396, the calculation shows. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 2,47,09,396 over 30 years.
How much money you can build with Rs 7,000 monthly SIP investment: If annualised return is 13%
With an annualised return of 13 per cent, the estimated capital gain could be around Rs 2,84,24,528. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 3,09,44,528 over 30 years.
How much money you can build with Rs 7,000 monthly SIP investment: If annualised return is 14%
With an annualised return of 14 per cent, the estimated capital gain could be around Rs 3,63,79,389. Over 30 years, your investment could grow to approximately Rs 3,88,99,389, according to calculations.
How much money you can build with Rs 7,000 monthly SIP investment: If annualised return is 15%
With an annualised return of 15 per cent, the estimated capital gain could be around Rs 4,65,48,744. Over 30 years, your investment could grow to approximately Rs 4,90,68,744.
Benefits of SIP
Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost averaging, which is most likely to mitigate losses in the long run. However, keep in mind the inherent risks of investing in SIP and plan accordingly.