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SIP Calculation: Rs 20,000/month investment, how quickly can you generate Rs 11 crore corpus? See calculations
- Written by Anamika Singh
Published: Zee Business| Updated: Zee Business
A Systematic Investment Plan (SIP) is an investment approach that allows you to invest a fixed amount periodically in a mutual fund or scheme of your choice. It's not a fund itself, but rather a vehicle to invest in equity-related funds or other schemes. Let's calculate how long it would take to build Rs 11 crore corpus with a monthly SIP investment of Rs 20,000.
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What is a Systematic Investment Plan (SIP)?
1/8SIP, or Systematic Investment Plan, enables investors to steadily channel funds into their chosen mutual fund scheme. It allows for regular investments of a fixed amount, which can be made daily, weekly, monthly, quarterly, or yearly, depending on individual preferences.
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How does SIP work?
2/8With a Systematic Investment Plan (SIP), you can invest a fixed amount at regular intervals, such as monthly. To set up a SIP, you instruct a mutual fund company to deduct a specified amount from your bank account and invest it in your chosen mutual fund scheme. This disciplined approach helps you build wealth over time.
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SIP calculation conditions
3/8Target corpus: Rs 11 crore Monthly investment: Rs 20,000 Annualised return: 12 per cent
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How much can Rs 20,000 monthly SIP build in 10 years?
4/8The investment amount will be Rs 24,00,000, the capital gains will be Rs 20,80,718, and the estimated retirement corpus will be Rs 44,80,718.
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How much can Rs 20,000 monthly SIP build in 20 years?
5/8The investment amount will be Rs 48,00,000, the capital gains will be Rs 1,35,97,147, and the estimated retirement corpus will be Rs 1,83,97,147.
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How much can Rs 20,000 monthly SIP build in 30 years?
6/8The investment amount will be Rs 72,00,000, the capital gains will be Rs 5,44,19,464, and the estimated retirement corpus will be Rs 6,16,19,464.
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How much can Rs 20,000 monthly SIP build in 35 years?
7/8The investment amount will be Rs 84,00,000, the capital gains will be Rs 10,18,16,623, and the estimated retirement corpus will be Rs 11,02,16,623.
8/8
How quickly can you build over Rs 11 crore with Rs 20,000 monthly SIP?
8/8It will take approximately 35 years to build over Rs 7 crore with Rs 20,000 monthly investment.
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