SIP Investment for 7 Years: How much wealth you can generate with Rs 20,000 monthly SIP| Know Calculation
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SIP investment for 7 years: To build a substantial corpus in the long term, SIP can be considered a good option. However, it is a market-linked investment, which means it comprises risk. But a strategically planned investment in a SIP mutual fund can help you build wealth for your future. In this write-up, we will calculate how much wealth one can generate in 7 years with a Rs 20,000 monthly SIP-
Note: For all the calculations, we are assuming the average return rate of 13 per cent.
How much wealth can you generate in 7 years with a Rs 20,000 monthly SIP?
According to the calculations, you will generate around Rs 26 lakhs corpus in 7 years if you invest Rs 20,000 monthly in an SIP.
Rs 26 lakhs corpus in 7 years: Calculating average investment
In 7 years, you will have a total investment of Rs 16,80,000 with a monthly SIP investment of Rs 20,000.
Rs 26 lakhs corpus in 7 years: Calculating average capital gain
With a monthly SIP investment of Rs 20,000, you can expect a total of Rs 10,67,341 (on average) as capital gains. However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
Rs 26 lakhs corpus in 7 years: Final Corpus Received
Consequently, at the end of 7 years, including the principal investment and capital gain, you will get a total of Rs 27,47,341.
Full Calculation
- Total Investment Amount: Rs 16,80,000
- Capital Gains: Rs 10,67,341
- Total Approx. Return: Rs 27,47,341
SIP Investment Summary -
| Year | SIP Amt/Month (in Rs) | Total Invested Amt (in Rs) | Interest Amt / Year (in Rs) | Maturity Value (in Rs) |
| Year1 | 20,000 | 2,40,000 | 17,590 | 2,57,590 |
| Year2 | 20,000 | 4,80,000 | 70,735 | 5,50,735 |
| Year3 | 20,000 | 7,20,000 | 1,64,345 | 8,84,345 |
| Year4 | 20,000 | 9,60,000 | 3,04,003 | 12,64,003 |
| Year5 | 20,000 | 12,00,000 | 4,96,066 | 16,96,066 |
| Year6 | 20,000 | 14,40,000 | 7,47,768 | 21,87,768 |
| Year7 | 20,000 | 16,80,000 | 10,67,341 | 27,47,341 |
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
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