SIP Calculation: Rs 15,000/month investment, how soon can you generate Rs 1 crore corpus?
Find out how soon you can build Rs 1 crore corpus by investing Rs 15,000 monthly in a systematic investment plan. Also, find out the estimated retirement corpus.
A systematic investment plan is popularly known as SIP, where you can invest a fixed amount in mutual funds daily, weekly, monthly, quarterly, or yearly, depending on your choice, and generate wealth over time. But how does it actually work? A systematic investment plan is a long-term investment strategy that helps you generate wealth gradually with the help of compounding. By investing fixed amounts regularly, you buy more units of the mutual fund when the price is low and fewer units when the price is high, which helps to average out your investment cost over time. Therefore, let’s find out how fast you can generate Rs 1 crore by investing Rs 15,000 monthly in SIP.
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DISCLAIMER: Not financial advice; invest at your own risk
What is compounding?
Compounding helps your investment generate returns not only on the principal investment 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. 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.
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 15,000
Annualised return: 12 per cent
How much can Rs 15,000 monthly SIP build in 10 years?
The investment amount will be Rs 18,00,000, the capital gains will be Rs 15,60,538, and the estimated retirement corpus will be Rs 33,60,538.
How much can Rs 15,000 monthly SIP build in 15 years?
The investment amount will be Rs 27,00,000, the capital gains will be Rs 44,38,971, and the estimated retirement corpus will be Rs 71,38,971.
How much can Rs 15,000 monthly SIP build in 18 years?
The investment amount will be Rs 32,40,000, the capital gains will be Rs 74,35,929, and the estimated retirement corpus will be Rs 1,06,75,929.
How fast can you build Rs 1 crore with Rs 15,000 monthly SIP?
It will take approximately 18 years to build Rs 1 crore with Rs 15,000 monthly investment.