Power of 12%, 13%, 14%, 15% Returns: Know how much your Rs 7,000 monthly SIP investment will grow in 20 years
Power of compounding: Everyone wants to secure their financial future by saving a large sum of money. However, they often think that it requires huge investments. But the truth is that even a small amount can do wonders. A monthly SIP of Rs 9,000, Rs 8,000, and even Rs 7,000 can help you build a corpus of around Rs 1 crore. The key is to be disciplined and give your investments enough time to grow. In this write-up, we will calculate how much wealth you can create with a monthly SIP investment of Rs 7,000 over 20 years at 12%, 13%, 14%, and 15% returns.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
Understanding SIP
Mutual fund SIP is an investment strategy linked to the stock market. In this, the investor invests a fixed amount at regular intervals.
Invest according to your financial capacity
The fixed amount is based on the financial capacity of the investor.
Benefits of SIP
- Flexibility in investment
- Rupee cost averaging
- Power of compounding
What is the power of compounding
The power of compounding creates a snowball effect that helps your investments grow exponentially over time.
SIP investment: Understand the scenario
Suppose you’re investing Rs 7,000 monthly in an SIP for 20 years. Now, how much corpus will you receive at the end? Let's calculate and find-
SIP investment: Understand the scenario
Scenario 1: How much wealth will you generate after 20 years if annualised return rate is 12%?
Scenario 2: How much wealth will you generate after 20 years if annualised return rate is 13%?
Scenario 3: How much wealth will you generate after 20 years if annualised return rate is 14%?
Scenario 4: How much wealth will you generate after 20 years if annualised return rate is 15%?
SIP investment: Total investment
According to the calculations, your total investment over 20 years would be Rs 16,80,000.
Annualised return is 12%: How much estimated capital gain can you build with Rs 7,000 monthly SIP?
With an annualised 12 per cent return, the estimated capital gain could be around Rs 47,59,001.
Annualised return is 12%: How much wealth can you build with Rs 7,000 monthly SIP?
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 64,39,001 over 20 years.
Annualised return is 13%: How much estimated capital gain can you build with Rs 7,000 monthly SIP?
With an annualised 13 per cent return, the estimated capital gain could be around Rs 55,89,396.
Annualised return is 13%: How much wealth can you build with Rs 7,000 monthly SIP?
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 72,69,396 over 20 years.
Annualised return is 14%: How much estimated capital gain can you build with Rs 7,000 monthly SIP?
With an annualised 14 per cent return, the estimated capital gain could be around Rs 65,34,319.
Annualised return is 14%: How much wealth can you build with Rs 7,000 monthly SIP?
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 82,14,319 over 20 years.
Annualised return is 15%: How much estimated capital gain can you build with Rs 7,000 monthly SIP?
With an annualised 15 per cent return, the estimated capital gain could be around Rs 76,09,514.
Annualised return is 15%: How much wealth can you build with Rs 7,000 monthly SIP?
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 92,89,514 over 20 years.