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Power of Rs 15,000 SIP: How long it will take to achieve Rs 7 crore retirement corpus? See calculations to know
- Written by Anamika Singh
Published: Zee Business| Updated: Zee Business
SIP is a popular investment option that helps individuals build a sizeable retirement corpus. Even a small amount can do wonders. The key to generating a satisfactory corpus is starting early and staying consistent. The power of compounding plays a great role, it encourages people to create goals and then work on them to achieve them. Similarly, if you invest Rs 15,000 in a monthly systematic investment plan (SIP) you can generate a retirement corpus of Rs 7 crore. Let’s understand how.
Photos source: Pixabay/Representational
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
1/15
SIP
1/15A systematic investment plan (SIP) is a process of investing a fixed amount in mutual funds. You can invest daily, weekly, monthly, quarterly, or yearly, it depends on the choice of the investors.
2/15
Why should one opt for SIP?
2/15SIP is reasonable as individuals can start with a small amount of Rs 100. It is also convenient, with automated deductions you don’t have to worry about missing out on investment.
3/15
SIP is simple and beginner-friendly
3/15SIP is perfect for beginners, by investing even a small amount regularly, first-time investors can start their journey toward building a sizeable corpus.
4/15
Start early
4/15Investor A: Starts investing Rs 5,000 per month at age 25 and continues till age 45 (20 years). Total Investment: Rs 12,00,000 Maturity Amount (at 12 per cent annual return): Estimated Rs 50,00,000
Investor B: Starts investing Rs 5,000 per month at age 35 and continues till age 55 (20 years). Total Investment: Rs 12,00,000 Maturity Amount (at 12 per cent annual return): Estimated Rs 28,00,000
By starting 10 years earlier, Investor A earns Rs 22,00,000 more.
5/15
SIP: Calculation condition
5/15Target corpus: Rs 7 crore Monthly investment: Rs 15,000 Annualised return: 12 per cent
6/15
How long it will take to create a corpus of Rs 7 crore
6/15It will approximately take 33 years to generate Rs 7 crore.
7/15
How much can Rs 15,000 SIP build in 10 years?
7/15The investment amount will be Rs 18,00,000, the capital gains will be Rs 16,85,086, and the estimated retirement corpus will be Rs 34,85,086.
8/15
How much can Rs 15,000 SIP build in 20 years?
8/15The investment amount will be Rs 36,00,000, the capital gains will be Rs 1,13,87,219, and the estimated retirement corpus will be Rs 1,49,87,219.
9/15
How much can Rs 15,000 SIP build in 30 years?
9/15The investment amount will be Rs 54,00,000, the capital gains will be Rs 4,75,48,707, and the estimated retirement corpus will be Rs 5,29,48,707.
10/15
How much can Rs 15,000 SIP build in 33 years?
10/15The investment amount will be Rs 59,40,000, the capital gains will be Rs 7,04,69,971, and the estimated retirement corpus will be Rs 7,64,09,971.
11/15
SIP Returns: What You Need to Know
11/15It’s important to remember that SIP is a market-linked scheme, so returns are not guaranteed.
12/15
12% Return is Estimate
12/15The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
13/15
How much can Rs 15,000 SIP build in 10 years if annulised return is 13%?
13/15The investment amount will be Rs 18,00,000, the capital gains will be Rs 19,00,210, and the estimated retirement corpus will be Rs 37,00,210.
14/15
How much can Rs 15,000 SIP build in 10 years if annulised return is 14%?
14/15The investment amount will be Rs 18,00,000, the capital gains will be Rs 21,31,371, and the estimated retirement corpus will be Rs 39,31,371.
15/15
How much can Rs 15,000 SIP build in 10 years if annulised return is 15%?
15/15The investment amount will be Rs 18,00,000, the capital gains will be Rs 23,79,859, and the estimated retirement corpus will be Rs 41,79,859.
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