itr filing 202627 min ago
Power of Rs 5,000 SIP: How quickly can you generate Rs 80 lakh corpus with just Rs 5,000 monthly investment?
- Written by Anamika Singh
Published: Zee Business| Updated: Zee Business
Investing Rs 5,000 monthly can grow to a Rs 80 lakh corpus in 25 years? It sounds amazing, but it's possible with compounding. Compounding helps your money grow by adding earnings to your initial amount and previous earnings. The longer you invest, the more your money can grow. On that note, let’s find out how you can plan to generate this amount with strategic and disciplined investment. With the help of a systematic investment plan (SIP), you can achieve this target goal. See the calculations for a better understanding.
Photo source: Pixabay/Representational
1/9
Planning to invest in SIP?
1/9SIP is perfect for beginners. Some SIPs in mutual funds let you invest small amounts like Rs 100 regularly. It's convenient too, with automatic deductions, so you won't miss a payment. Just keep in mind, your returns will depend on the fund's performance and market conditions.
2/9
Systematic Investment Plan
2/9SIP lets you invest a fixed amount in mutual funds regularly - daily, weekly, monthly, or yearly. You can start with just Rs 100 and change the amount as needed. It's a flexible way to invest and grow your money.
3/9
Why should one start investing early?
3/9To get maximum returns from investment in the long run, one should start investing early. If you start investing early, your money has more time to grow in the long run.
4/9
SIP calculations condition
4/9Target corpus: Rs 60 lakh corpus Monthly investment: Rs 5,000 Annualised return: 12 per cent
5/9
How long will it take to build Rs 80 lakh corpus with Rs 5,000 monthly SIP?
5/9It will take approximately 25 years to generate Rs 80 lakh corpus.
6/9
How much can Rs 5,000 monthly SIP build in 10 years?
6/9The investment amount will be Rs 6,00,000, the capital gains will be Rs 5,20,179, and the estimated retirement corpus will be Rs 11,20,179.
7/9
How much can Rs 5,000 monthly SIP build in 15 years?
7/9The investment amount will be Rs 9,00,000, the capital gains will be Rs 14,79,657, and the estimated retirement corpus will be Rs 23,79,657.
8/9
How much can Rs 5,000 monthly SIP build in 20 years?
8/9The investment amount will be Rs 12,00,000, the capital gains will be Rs 33,99,287, and the estimated retirement corpus will be Rs 45,99,287.
9/9
How much can Rs 5,000 monthly SIP build in 25 years?
9/9The investment amount will be Rs 15,00,000, the capital gains will be Rs 70,11,033, and the estimated retirement corpus will be Rs 85,11,033.
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