Power of Rs 3,000 SIP: How quickly can you generate Rs 50 lakh, Rs 1 crore, and Rs 2 crore corpus with just Rs 3,000 monthly investment?
Let’s find out how soon one can generate Rs 50 lakh, Rs 1 crore, and Rs 2 crore by investing just Rs 3,000 monthly in a systematic investment plan.
Rs 3,000 may be a small amount, and dreaming of building a massive corpus out of it may sound untrue, but one can turn this distant dream into a reality with a disciplined and consistent investment strategy. Even a small amount can do wonders, just like how we are going to discuss how a monthly investment of Rs 3,000 in a systematic investment plan can turn into a massive corpus of Rs 2 crore, Rs 1 crore, and Rs 50 lakh. Now let’s find out how fast it can happen and what the estimated retirement corpus would be.
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DISCLAIMER: Not financial advice; invest at your own risk
What is compounding?
With the help of compounding, one can generate returns not only on the principal investment amount but also on the accumulated returns. It helps to grow your wealth in the long run. The secret to benefiting from compounding is to start early and stay consistent with your investment.
What is SIP?
A systematic investment plan(SIP) allows investors to invest a fixed amount in mutual funds. As an investor, you can either invest daily, weekly, monthly, quarterly, or yearly, depending on your choice. Plus, you can start your investment journey with a small amount of Rs 100.
How does SIP work?
A systematic investment plan allows investors to invest a fixed amount regularly. You can set up a SIP with a mutual fund company and instruct them to deduct a fixed amount from your bank account at regular intervals.
Benefits of SIP?
SIPs can help you build wealth in the long run through compounding and the power of regular investing.
They can make investing more manageable and less stressful by eliminating the need to time the market.
SIP calculation conditions
Target corpus: Rs 1 crore corpus, Rs 50 lakh, Rs 2 crore
Monthly investment: Rs 3,000
Annualised return: 12 per cent
How long will it take to build Rs 50 lakh with Rs 3,000 monthly SIP?
It will take approximately 25 years to generate Rs 50 lakh corpus.
How much can Rs 3,000 monthly SIP build in 25 years?
The investment amount will be Rs 9,00,000, the capital gains will be Rs 42,06,620, and the estimated retirement corpus will be Rs 51,06,620.
How long will it take to build Rs 1 crore corpus with Rs 3,000 monthly SIP?
It will take approximately 31 years to generate Rs 1 crore corpus.
How much can Rs 3,000 monthly SIP build in 31 years?
The investment amount will be Rs 11,16,0000, the capital gains will be Rs 92,74,369, and the estimated retirement corpus will be Rs 1,03,90,369.
How long will it take to build Rs 2 crore corpus with Rs 3,000 monthly SIP?
It will take approximately 37 years to generate Rs 2 crore corpus.
How much can Rs 3,000 monthly SIP build in 37 years?
The investment amount will be Rs 9,00,000, the capital gains will be Rs 42,06,620, and the estimated retirement corpus will be Rs 51,06,620.