Power of Compounding: How to accumulate Rs 10 crore retirement fund through SIP

ZeeBiz Desk

Oct 07,2024

SIP or Systematic Investment Plan is a mutual fund investment scheme that allows investors to invest a fixed amount regularly.

How can you take better benefits of compounding?

Here is how you can take advantage of compounding.

Start investing early

You will get better returns if you start an SIP early.

Try not to cancel in between

It would help if you tried to continue the SIP to get better compounding benefits. If you want to achieve your goal, don't think to cancel SIP.

SIP: Minimum investment amount

Currently, the minimum investment amount is Rs 500 per month.

SIP: Maximum investment amount

There is no maximum limit to invest in an SIP.

Compounding interest

SIPs can let your money grow tremendously over time due to compounding interest.

How to accumulate Rs 10 crore fund?

If you start SIP at the age of 30 and continue investing till 60 then you can achieve this goal of accumulating Rs 10 crore fund.

Invest Rs 15,400 per month

For example, if you start an investment of Rs 15,400 per month at 30 and continue investing till 60. Then you will invest a total of Rs 64,68,000. Your expected return rate is 12 per cent and you will be able to get around Rs 9,35,59,143 as interest. The maturity amount will be Rs 10,00,27,143.

Disclaimer

Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.