Power of Rs 12,000 SIP: How quickly can you generate Rs 1 crore corpus with Rs 12,000 monthly investment?
Let’s find out how fast one can build a sizeable corpus of Rs 1 crore with a monthly investment of Rs 12,000. Take a look to find out the estimated retirement corpus.
A systematic investment plan (SIP) is a systematic way to invest, which makes it easier for investors to stay consistent and disciplined in their investing journey. You can start your investment journey through SIP with a small amount of Rs 100. SIPs are particularly effective for long-term goals like retirement, but you can also plan to achieve a short-term goal with the help of a systematic investment plan. Now let’s find out how quickly you can build Rs 1 crore corpus with Rs 12,000 monthly SIP.
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DISCLAIMER: Not financial advice; invest at your own risk
What is compounding?
Compounding allows your investment to generate returns not only on the principal investment amount but also on the accumulated returns. 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 you to invest a fixed amount in mutual funds (s). You can 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.
What are 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.
Why should you go for early investment?
To get maximum returns from investment in the long run, one should start investing early.
SIP calculation conditions
Target corpus: Rs 1 crore corpus
Monthly investment: Rs 12,000
Annualised return: 12 per cent
How much can Rs 12,000 monthly SIP build in 10 years?
The investment amount will be Rs 14,40,000, the capital gains will be Rs 12,48,431, and the estimated retirement corpus will be Rs 26,88,431.
How much can Rs 12,000 monthly SIP build in 15 years?
The investment amount will be Rs 21,60,000, the capital gains will be Rs 35,51,177, and the estimated retirement corpus will be Rs 57,11,177.
How much can Rs 12,000 monthly SIP build in 20 years?
The investment amount will be Rs 28,80,000, the capital gains will be 81,58,288, and the estimated retirement corpus will be Rs 1,10,38,288.
How long will it take to build Rs 1 crore with Rs 12,000 monthly SIP?
It will take approximately 20 years to build Rs 1 crore with Rs 12,000 monthly investment.