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Power of Rs 5,000 SIP: How quickly can you generate Rs 1 crore corpus with just Rs 5,000 monthly investment?
Written By Priya Vishwakarma
Published: | Updated:
Power of Rs 5,000 SIP: If you want to build a corpus of Rs 1 crore with a Rs 5,000 monthly investment, then you need to plan and invest in SIP strategically. In this write-up, we will calculate how much time it will take to generate a Rs 1 crore corpus with just Rs 5,000 monthly investment-
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According to the calculations, you need to invest for at least 26 years in SIP mutual funds to build a corpus of over Rs 1 crore with a Rs 5,000 monthly investment.
Power of Rs 5,000 SIP: If you want to build a corpus of Rs 1 crore with a Rs 5,000 monthly investment, then you need to plan and invest in SIP strategically. In this write-up, we will calculate how much time it will take to generate a Rs 1 crore corpus with just Rs 5,000 monthly investment-
Note: For all the calculations, we are assuming the average return rate of 12 per cent.
How much time will it take to build a Rs 1 crore corpus with Rs 5,000 monthly SIP?
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According to the calculations, you need to invest for at least 26 years in SIP mutual funds to build a corpus of over Rs 1 crore with a Rs 5,000 monthly investment.
Rs 1 crore corpus with Rs 5,000 monthly SIP: Calculating average investment
In 26 years, you will invest a total of Rs 15,60,000.
Rs 1 crore corpus with Rs 5,000 monthly SIP: Calculating average capital gain
Assuming the average annual return rate of 12 per cent, a total of Rs 91,95,560 (average) will be received in terms of capital gain. It should be noted that this is an expected return, and the actual amount may vary depending on the market condition.
Rs 1 crore corpus with Rs 5,000 monthly SIP: Final Corpus Received
Consequently, at the end of 26 years, including the principal investment and capital gain, you will get a total of Rs 1,07,55,560.
Full Calculation: You may become the owner of Rs 1.07 crore after 26 years
- Total Investment Amount: Rs 15,60,000
- Capital Gains: Rs 91,95,560
- Total Approx. Return: Rs 1,07,55,560
| Year | SIP Amt / Month | Total Invested Amt | Interest Amt / Year | Maturity Value |
| Year1 | 5,000 | 60,000 | 4,047 | 64,047 |
| Year2 | 5,000 | 1,20,000 | 16,216 | 1,36,216 |
| Year3 | 5,000 | 1,80,000 | 37,538 | 2,17,538 |
| Year4 | 5,000 | 2,40,000 | 69,174 | 3,09,174 |
| Year5 | 5,000 | 3,00,000 | 1,12,432 | 4,12,432 |
| Year6 | 5,000 | 3,60,000 | 1,68,785 | 5,28,785 |
| Year7 | 5,000 | 4,20,000 | 2,39,895 | 6,59,895 |
| Year8 | 5,000 | 4,80,000 | 3,27,633 | 8,07,633 |
| Year9 | 5,000 | 5,40,000 | 4,34,108 | 9,74,108 |
| Year10 | 5,000 | 6,00,000 | 5,61,695 | 11,61,695 |
| Year11 | 5,000 | 6,60,000 | 7,13,074 | 13,73,074 |
| Year12 | 5,000 | 7,20,000 | 8,91,261 | 16,11,261 |
| Year13 | 5,000 | 7,80,000 | 10,99,656 | 18,79,656 |
| Year14 | 5,000 | 8,40,000 | 13,42,090 | 21,82,090 |
| Year15 | 5,000 | 9,00,000 | 16,22,880 | 25,22,880 |
| Year16 | 5,000 | 9,60,000 | 19,46,891 | 29,06,891 |
| Year17 | 5,000 | 10,20,000 | 23,19,604 | 33,39,604 |
| Year18 | 5,000 | 10,80,000 | 27,47,196 | 38,27,196 |
| Year19 | 5,000 | 11,40,000 | 32,36,627 | 43,76,627 |
| Year20 | 5,000 | 12,00,000 | 37,95,740 | 49,95,740 |
| Year21 | 5,000 | 12,60,000 | 44,33,371 | 56,93,371 |
| Year22 | 5,000 | 13,20,000 | 51,59,480 | 64,79,480 |
| Year23 | 5,000 | 13,80,000 | 59,85,286 | 73,65,286 |
| Year24 | 5,000 | 14,40,000 | 69,23,436 | 83,63,436 |
| Year25 | 5,000 | 15,00,000 | 79,88,175 | 94,88,175 |
| Year26 | 5,000 | 15,60,000 | 91,95,560 | 1,07,55,560 |
(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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