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.  

Anamika Singh | Jan 26, 2025, 08:06 PM IST

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)

 

1/10

What is SIP?

What is SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount in mutual funds. Investors can invest daily, weekly, monthly, quarterly, or yearly, depending on their choice. 

2/10

Why choose SIP?

Why choose SIP?

SIP is beginner-friendly, by investing even a small of Rs 100 regularly, first-time investors can start their journey toward building a sizeable corpus. It is also convenient, with automated deductions you don’t have to worry about missing out on investment.

3/10

Why should one start investing early?

Why should one start investing early?

To get maximum returns from investment in the long run one should start investing early. Let’s understand it through an example.

4/10

Start 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.

5/10

SIP calculations

SIP calculations

Target corpus: Rs 8 crore
Monthly investment: Rs 7,000
Annualised return: 12 per cent

6/10

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

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

It will approximately take 40 years to generate Rs 8 crore.

7/10

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

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

The investment amount will be Rs 8,40,000, the capital gains will be Rs 7,86,374, and the estimated retirement corpus will be Rs 16,26,374. 

8/10

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

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

The investment amount will be Rs 16,80,000, the capital gains will be Rs 53,14,035, and the estimated retirement corpus will be Rs 69,94,035.

 

9/10

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

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

The investment amount will be Rs 25,20,000, the capital gains will be Rs 2,21,89,396, and the estimated retirement corpus will be Rs 2,47,09,396.

10/10

How much can Rs 7,000 monthly SIP build in 40 years?

How much can Rs 7,000 monthly SIP build in 40 years?

The investment amount will be Rs 33,60,000, the capital gains will be Rs 7,98,16,942, and the estimated retirement corpus will be Rs 8,31,76,942.

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x