Power of Compounding: With monthly investments of Rs 3,500, Rs 7,500, and Rs 10,500, how quickly can you build Rs 1 crore corpus?
Let’s find out how quickly you can generate a huge corpus of Rs 1 crore starting with just Rs 3,500 monthly investment. For better understanding, we will also deal with basic calculations.
Have you ever dreamed of building a massive corpus for your future, but felt overburdened by the idea of saving a lot of money? Well, you're not alone, this is a common concern that many people share. The good part is that you don't need to start big to end big. Even small, consistent investments can add up to a massive amount in the long run. Let's explore how a monthly investment starting as low as Rs 3,500 can help you build a corpus of Rs 1 crore.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is compounding?
The power of compounding is a process through which your earnings generated by investments are reinvested to generate additional earnings. The secret to benefiting from compounding is early investment and staying consistent throughout the investment period.
What is Systematic investment plan?
SIP is an investment scheme in which you can invest a fixed amount in a mutual fund. You can invest according to your choice either daily, weekly, monthly, or yearly.
Why choose SIP?
SIP has a flexible investment option.
A systematic investment plan is automated, so you don’t have to worry about missing out on your investment cycle.
It is convenient.
SIP calculation conditions
Target corpus: Rs 1 crore
Monthly investments: Rs 3,500, Rs 7,500, and Rs 10,500
Annualised return: 12 per cent
How soon can you achieve Rs 1 crore corpus with Rs 3,500 monthly SIP?
It will take approximately 30 years to reach this target corpus.
How soon can you achieve Rs 1 crore corpus with Rs 7,500 monthly SIP?
It will take approximately 23 years to generate Rs 1 crore corpus.
How soon can you achieve Rs 1 crore corpus with Rs 10,500 monthly SIP?
It will take approximately 21 years to reach this target corpus.
What will be your retirement corpus with Rs 3,500 monthly SIP
The investment amount will be Rs 12,60,000, the estimated capital gains will be Rs 95,23,406, and the estimated retirement corpus will be Rs 1,07,83,406.
What will be your retirement corpus with Rs 7,500 monthly SIP?
The investment amount will be Rs 20,70,000, the estimated capital gains will be Rs 79,45,5950, and the estimated retirement corpus will be Rs 1,00,15,595.
What will be your retirement corpus with Rs 10,500 monthly SIP?
The investment amount will be Rs 26,46,000, the estimated capital gains will be Rs 83,05,571, and the estimated retirement corpus will be Rs 1,09,51,571.