Retirement Planning: In how many years your Rs 8,000 monthly SIP investment will grow to Rs 1 cr, Rs 2 cr and Rs 3 cr
Retirement Planning via SIP: Retirement planning is crucial for everyone, regardless of their occupation. However, the corpus required for post-retirement living can vary from person to person, depending on their needs and lifestyle. Some may be content with a corpus of Rs 1 crore, while others may require Rs 2 crore or more. Regardless of your goal, it’s essential to plan for retirement strategically. The earlier you start, the more time your money has to grow.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
Invest in Mutual Fund SIP
If you're looking to build a substantial retirement corpus but are unsure where to invest, a Mutual Fund SIP (Systematic Investment Plan) can be a good option. This disciplined investment strategy allows you to invest regularly—either monthly or quarterly—rather than in a lump sum. It takes advantage of the power of compounding and has the potential for market growth over time.
Retirement Planning via SIP: Building Rs 1 cr, Rs 2 cr, and Rs 3 cr with Rs 8,000 Monthly Investment
In this article, we will try to show how you can build a Rs 1 crore, Rs 2 crore, or Rs 3 crore retirement corpus by investing Rs 8,000 each month through SIP. We’ll also show how much time it takes to reach these goals.
Retirement Planning via SIP: Assumed 12% Annualised Return
The growth of your SIP investment depends on the annualised return rate. Here, we’re assuming a 12 per cent annual return, which is the average return for equity funds over the long term.
How Long Will It Take for Your Rs 8,000 SIP to Grow to Rs 1 crore?
To accumulate a retirement corpus of Rs 1 crore with an Rs 8,000 monthly SIP, you will need to invest for 22 years, as shown in the following calculation.
How Much Can Rs 8,000 Per Month Grow to in 22 Years?
If you start an Rs 8,000 SIP and continue it for 22 years, your total investment will be Rs 21,12,000. With an annualised return of 12 per cent, the estimated capital gain could be Rs 82,55,167. Adding this to your initial investment, your total corpus could grow to approximately Rs 1,03,67,167 in 22 years.
How Long Will It Take for Your Rs 8,000 SIP to Grow to Rs 2 crore?
To accumulate Rs 2 crore with an Rs 8,000 SIP, you will need to invest for 28 years.
How Much Can Rs 8,000 Per Month Grow to in 28 Years?
If you start an Rs 8,000 SIP and continue it for 28 years, your total investment will be Rs 26,88,000. With a 12 per cent annual return, the estimated capital gain could be Rs 1,93,80,678. Adding this to your initial investment, your total corpus could grow to approximately Rs 2,20,68,678 in 28 years.
How Long Will It Take for Your Rs 8,000 SIP to Grow to Rs 3 crore?
To accumulate Rs 3 crore with an Rs 8,000 SIP, you will need to invest for 31 years.
How Much Can Rs 8,000 Per Month Grow to in 31 Years?
If you start an Rs 8,000 SIP and continue it for 31 years, your total investment will be Rs 29,76,000. With a 12 per cent annual return, the estimated capital gain could be Rs 2,89,47,236. Adding this to your initial investment, your total corpus could grow to approximately Rs 3,19,23,236 in 31 years.
Things to Remember About SIP Investment
It’s important to understand that SIP is a market-linked investment, meaning returns are not guaranteed. The 12 per cent return mentioned here is an estimate, and actual returns may fluctuate depending on market conditions.
Benefits of SIP
Despite the risks associated with the market, SIP remains a popular method for wealth creation due to its benefits, such as rupee cost averaging. This strategy can help mitigate potential losses over the long run, though it's essential to be mindful of the inherent risks and plan accordingly.