SIP Investment Strategy: How soon your Rs 5,000, Rs 7,000, Rs 10,000, Rs 12,000 monthly SIP will reach Rs 5 crore retirement corpus?
SIP Investment Strategy: If you don't want to rely on others for money to cover your daily essentials after retirement then it's essential to start planning for your post-retirement life. One way to accumulate a substantial retirement corpus is by investing in an SIP (Systematic Investment Plan). This long-term investment option, offered by many mutual funds, allows investors to invest small amounts periodically—monthly, quarterly, or annually.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
How soon your Rs 5,000, Rs 7,000, Rs 10,000, Rs 12,000 monthly SIP will reach Rs 5 crore retirement corpus?
In this write-up, we will show through calculations how many years it will take for a monthly investment of Rs 5,000, Rs 7,000, Rs 10,000, Rs 12,000 to grow into a retirement corpus of Rs 5 crore.
Assuming an Annualised Return of 12%
For the below calculations, we are assuming an average annual return rate of 12 per cent.
In how many years your Rs 5,000 monthly investment will grow to Rs 5 crore retirement corpus?
As per the calculations, you will need to invest in SIP for 39 years to build a corpus of Rs 5 crore with Rs 5,000 monthly investment.
Rs 5,000 Monthly SIP Investment: Calculations to build Rs 5 crore in 39 years
Total Investment: Rs 23,40,000
Expected Capital Gain: Rs 5,03,28,385
Total Corpus Received: Rs 5,26,68,385
In how many years your Rs 7,000 monthly investment will grow to Rs 5 crore retirement corpus?
To build a corpus of Rs 5 crore with Rs 7,000 monthly SIP investment, you will need to invest in SIP for 36 years, shows calculation.
Rs 7,000 Monthly SIP Investment: Calculations to build Rs 5 crore in 36 years
Total Investment: Rs 30,24,000
Expected Capital Gain: Rs 4,82,98,888
Total Corpus Received: Rs 5,13,22,888
In how many years your Rs 10,000 monthly investment will grow to Rs 5 crore retirement corpus?
To build a corpus of Rs 5 crore with Rs 10,000 monthly investment, you will need to invest in SIP for 33 years, shows calculation.
Rs 10,000 Monthly SIP Investment: Calculations to build Rs 5 crore in 33 years
Total Investment: Rs 39,60,000
Expected Capital Gain: Rs 4,69,79,981
Total Corpus Received: Rs 5,09,39,981
In how many years your Rs 12,000 monthly investment will grow to Rs 5 crore retirement corpus?
As per the calculations, to build a retirement corpus of Rs 5 crore with Rs 12,000 monthly investment, you will need to invest in SIP for 32 years.
Rs 12,000 Monthly SIP Investment: Calculations to build Rs 5 crore in 32 years
Total Investment: Rs 46,08,000
Expected Capital Gain: Rs 4,95,03,564
Total Corpus Received: Rs 5,41,11,564
Important Point to Know Before 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 some examples: If the annualised return is 13 per cent 14 per cent and 15 per cent, how soon can you reach an Rs 5 crore corpus target with a Rs 7,000 SIP investment -
In how many years your Rs 7,000 monthly investment will grow to Rs 5 crore if annualised return is 13%?
According to the calculations, you will need to invest in SIP for 34 years to build a retirement corpus of Rs 5 crore.
In how many years your Rs 7,000 monthly investment will grow to Rs 5 crore if annualised return is 14%?
As per the calculations, you will need to invest in SIP for 32 years to build a retirement corpus of over Rs 5,15,80,431.
In how many years your Rs 7,000 monthly investment will grow to Rs 5 crore if annualised return is 15%?
With 15 per cent annualised return, you will need to invest in SIP for 31 years to build a retirement corpus of Rs 5,70,47,914.