Power of Compounding: How quickly can you generate Rs 1.5 crore corpus with monthly investments of Rs 4,500, Rs 6,500, and Rs 8,500?
The power of compounding can do wonders if you stay consistent and disciplined with your investment strategy. Even if you start your investment journey with a small amount there are chances that you can end up generating a massive corpus. For now, let’s find out how quickly you can build a Rs 1.5 crore corpus with just 4.5K to 8.5K monthly investments.
It's true that one cannot create huge wealth overnight, but it is also true that patience and strategic investment can lead you towards generating a massive corpus. But for that, you have to be consistent with your investment. This way, you can build a sizeable corpus in the long run. For example, if your monthly investments are Rs 4,500 to Rs 8,500, you can end up with a huge retirement amount. People often underestimate the power of small amounts, but to your surprise, even small investments can do wonders. Let's find out how.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Compounding effects
The power of compounding is a method through which earnings generated by investments are reinvested to generate additional earnings. The key to benefit from compounding is early investment and staying consistent throughout the investment period.
What is Systematic investment plan?
SIP is an investment scheme through 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 opt for SIP?
Flexible investment option
Automated
convenient
SIP calculation conditions
Target corpus: Rs 1.5 crore
Monthly investments: Rs 4,500, Rs 6,500, and Rs 8,500
Annualised return: 12 per cent
How soon can you achieve Rs 1.5 crore corpus with Rs 4,500 monthly SIP?
It will take approximately 31 years to reach this target corpus.
How soon can you achieve Rs 1.5 crore corpus with Rs 6,500 monthly SIP?
It will take approximately 28 years to reach this target corpus.
How soon can you achieve Rs 1.5 crore corpus with Rs 8,500 monthly SIP?
It will take approximately 26 years to reach the given target corpus.
What will be your retirement corpus with Rs 4,500 monthly SIP
The investment amount will be Rs 16,74,000, the estimated capital gains will be Rs 1,39,11,554, and the estimated retirement corpus will be Rs 1,55,85,554.
What will be your retirement corpus with Rs 6,500 monthly SIP?
The investment amount will be Rs 21,84,000, the estimated capital gains will be Rs 1,36,40,620, and the estimated retirement corpus will be Rs 1,58,24,620.
What will be your retirement corpus with Rs 8,500 monthly SIP?
The investment amount will be Rs 26,52,000, the estimated capital gains will be Rs 1,36,61,522, and the estimated retirement corpus will be Rs 1,63,13,522.