Retirement Planning: With Rs 21,000/month SIP, how quickly can you generate Rs 10 crore & Rs 12 crore corpus?

Retirement Planning with Rs 21,000/month SIP Investment: For those people who want to generate a substantial corpus for their post-retirement life and are looking for investment ideas, SIP in mutual funds can be beneficial. But what is SIP? How does investment in SIP build a substantial corpus? Let's learn about it with an example -

What is SIP?

SIP in mutual funds is an investment strategy where an investor contributes a fixed amount regularly, based on their financial capacity. The investment amount can be as low as Rs 500, while this interval can be monthly, weekly, or annually. 

Suppose you are investing Rs 21,000 every month in SIP mutual funds. Now, assuming the average annual return rate is 12 per cent, how much time will it take to create a retirement corpus of Rs 10 crore and Rs 12 crore? Let's calculate and find out -

How quickly can you generate a Rs 10 crore retirement corpus with Rs 21,000 monthly SIP?

To build a retirement corpus of Rs 10 crore, you need to invest Rs 21,000 monthly in SIP for at least 34 years, the calculation shows.

Rs 10 crore with 21,000 monthly SIP in 34 years: Calculations

• Total Investment: Rs 85,68,000
• Estimated Capital Gain: Rs 9,45,20,712
• Total Corpus Received: Rs 10,30,88,712

How quickly can you generate a Rs 12 crore retirement corpus with Rs 21,000 monthly SIP?

According to the calculation, you will need to invest for at least 36 years in SIP to build a retirement corpus of over Rs 12 crore with a Rs 21,000 monthly investment.

Rs 12 crore with 21,000 monthly SIP in 36 years: Calculations

• Total Investment: Rs 90,72,000
• Estimated Capital Gain: Rs 12,08,10,845
• Total Corpus Received: Rs 12,98,82,845

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