Power of Rs 11,000 SIP: How can you generate Rs 13 crore corpus with just 11,000 monthly investment?
Building a Rs 13 crore corpus with a monthly investment of just Rs 11,000 might seem impossible. But, with the power of compounding and a systematic investment plan (SIP), you can make this dream a reality. A SIP involves investing a fixed amount regularly, helping you stay consistent and disciplined in your investment strategy. Let’s understand it through calculations
You may find it hard to believe that investing just Rs 11,000 every month can help you build a massive Rs 13 crore corpus. It may seem too good to be true, but the power of compounding and a systematic investment plan (SIP) can make this dream a reality. Let's take a closer look at the calculations to understand how this is possible and what it takes to achieve this incredible goal.
Photos source: Pixabay/Representational
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is a systematic investment plan?
SIP is an investment scheme where you can invest a fixed amount in mutual funds either daily, weekly, monthly, quarterly, or yearly, depending on your choice.
Power of SIP: Why you should invest
SIP is perfect for beginners. You can start investing with as little as Rs 100. Plus, it's easy and hassle-free. Once you set it up, the money is automatically deducted, so you'll never miss an investment.
Why early investment matters
If you want to get the most out of your investments, you should start investing as early as possible. Let's look at an example to see why this makes a big difference.
Example of early investment
Rahul starts investing Rs 1,000 per month at age 20.
After 40 years, he gets an estimated Rs 1.18 crore.
His friend, Rohan, starts investing Rs 1,000 per month at age 30.
After 30 years, he gets Rs 35 lakh.
Rahul started 10 years earlier and got 3 times more returns
SIP calculations
Target corpus: Rs 13 crore
Monthly investment: Rs 11,000
Annualised return: 12 per cent
How long it will take to build Rs 13 crore with Rs 11,000 monthly SIP
It will take approximately 40 years to generate Rs 13 crore.
How much can Rs 11,000 monthly SIP build in 10 years?
The investment amount will be Rs 13,20,000, the capital gains will be Rs 12,35,730, and the estimated retirement corpus will be Rs 25,55,730.
How much can Rs 11,000 monthly SIP build in 20 years?
The investment amount will be Rs 26,40,000, the capital gains will be Rs 83,50,627, and the estimated retirement corpus will be Rs 1,09,90,627.
How much can Rs 11,000 monthly SIP build in 30 years?
The investment amount will be Rs 39,60,000, the capital gains will be Rs 3,48,69,052, and the estimated retirement corpus will be Rs 3,88,29,052.
How much can Rs 11,000 monthly SIP build in 40 years?
The investment amount will be Rs 52,80,000, the capital gains will be Rs 12,54,26,623, and the estimated retirement corpus will be Rs 13,07,06,623.