Power of Compounding: How quickly can monthly SIP of Rs 6,000, Rs 8,000, and Rs 10,000 build Rs 3 Crore corpus?

Suppose you start investing a small amount every month, like Rs 6,000, Rs 8,000, or Rs 10,000. You may think it’s not enough to make a huge difference, but here’s the thing: the power of compounding. It can help you achieve your target retirement corpus if you are consistent and disciplined with your investments. In the long run, even small amounts can add up to a big corpus, like Rs 3 Crore. The longer you invest, the more your money works for you. In this article, we’ll explore how these regular monthly SIPs can help you reach your target corpus.

Read more: Power of Rs 10,000 SIP: Can one achieve Rs 6 crore corpus with Rs 10,000 monthly investment?

What is compounding?

Add Zee Business as a Preferred Source

Compounding is the process through which investments generate earnings that are reinvested to generate additional earnings. You can take benefit of the power of compounding by staying consistent. The sooner you start investing, the better it is. Starting early gives you more time to see the benefits of compounding.

Benefits of compounding?

• Suitable for long-term investors
• Flexibility
• Encourages habit of saving at an early age

What is SIP?

SIP is a process of investing in a mutual fund with a fixed amount, either daily, weekly, monthly, or yearly.

Benefits of SIP?

• Flexible Investment
• Long term growth
• Convenient

SIP calculation conditions

• Target corpus: Rs 3 crore
• Monthly investments: Rs 6,000, Rs 8,000, Rs 10,000
• Annualised return: 12 per cent

How long it will take to generate Rs 3 crore with Rs 6,000 monthly SIP?

It will approximately take 33 years to achieve the target of Rs 3 crore.

From Rs 6,000 monthly SIP to Rs 3 crore at 12 per cent annualised return

The invested amount will be Rs 23,76,000. The estimated capital gains will be Rs 2,81,87,989, and the estimated retirement corpus will be Rs 3,05,63,989.

How long it will take to generate Rs 3 crore with Rs 8,000 monthly SIP?

It will approximately take 31 years to achieve the target of Rs 3 crore.

From Rs 8,000 monthly SIP to Rs 3 crore

The invested amount will be Rs 29,76,000. The estimated capital gains will be Rs 2,89,47,236, and the estimated retirement corpus will be Rs 3,19,23,236.

How long it will take to generate Rs 3 crore with Rs 10,000 monthly SIP?

It will approximately take 29 years to achieve the target of Rs 3 crore.

From Rs 10,000 monthly SIP to Rs 3 crore

The invested amount will be Rs 34,80,000. The estimated capital gains will be Rs 2,77,32,516, and the estimated retirement corpus will be Rs 3,12,12,516.

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)