Power of Rs 7,000 SIP: How you can generate Rs 8 crore with just Rs 7,000 monthly investment? See calculations
Can you believe that investing just Rs 7,000 monthly can grow into a huge corpus of Rs 8 crore? It may seem too good to be true, but the power of compounding can make this dream a reality. By investing regularly through a Systematic Investment Plan (SIP), you can benefit from the power of compounding to grow your wealth in the long run. Let's explore how this is possible and how you can achieve this corpus target with the help of SIP and compounding.
Have you ever thought investing just Rs 7,000 a month could give you a massive Rs 8 crore for retirement? It sounds like a dream, but one can turn this dream into reality. In this article, we will understand how investing regularly, through mutual fund SIP, can add up to a huge amount over time. We will even do the calculations to help you figure out how long it'll take to reach your 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 SIP?

Why choose SIP?

Why should one start investing early?

Start early

Investor A: Starts investing ₹5,000/month at age 25 and continues till age 45 (20 years).
Total Investment: ₹12,00,000
Maturity Amount (at 12% annual return): ₹50,00,000
Investor B: Starts investing ₹5,000/month at age 35 and continues till age 55 (20 years).
Total Investment: ₹12,00,000
Maturity Amount (at 12% annual return): ₹28,00,000
By starting 10 years earlier, Investor A earns ₹22,00,000 more, showcasing the power of compounding.
SIP calculations

How long it will take to create a corpus of Rs 8 crore

How much can Rs 7,000 monthly SIP build in 10 years?

How much can Rs 7,000 monthly SIP build in 20 years?

How much can Rs 7,000 monthly SIP build in 30 years?
