Power of Compounding: How Rs 10,000 monthly SIP investment can help create Rs 2 crore, Rs 3 crore, and Rs 4 crore corpuses; know here
Compound Returns Benefits: Rs 10,000 monthly SIP investment, if done for a long time, can create a corpus worth crores. The key is to keep getting average returns and maintaining consistency.
Compound Returns Benefits: Completing financial goals is necessary for the financial freedom of an individual. Such a freedom provides mental peace and provides one a sense of achievement. An individual depends on their income to achieve their financial goal. No matter how small the amount one earns daily, monthly, or yearly, they need to depend on the same to create a corpus that can help them achieve financial goals. A person can start with a small amount and gradually move to a higher investment amount to accomplish their goals faster. Or, they can fix an amount and invest it religiously till their financial targets are not met. If they start investing early, they get more years for compounding of their investments compared to an investor who begins their investment journey late. A monthly systematic investment plan (SIP) of Rs 10,000 can be sufficient to create a corpus as large as Rs 4 crore. Know how compounding works and how one can create corpuses worth Rs 2 crore, Rs 3 crore, and Rs 4 crore from Rs 10,000 monthly SIP investment.
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
What is compounding?

What is compounding?

How it happens

If a person invests Rs 5 lakh lump sum amount in a mutual fund where they are getting a 12 per cent annualised return, after 19 years, their estimated corpus will be Rs 43,06,380. After 20 years, it will grow to estimated Rs 48,23,146. It means in 1 year, the estimated growth is Rs 5,16,766, which is more than the principal amount.
How time plays role in compounding?

How time plays role in compounding?

In 30 years, it will reach an estimated Rs 1,05,89,741 on investment of Rs 10,80,000. In 40 years, it will reach Rs 3,56,47,261 on investment of Rs 3,56,47,261. Any guess for 50 years, if the investor has that much time and patience? In 50 years, the estimated corpus will be Rs 11,83,46,769.29 on investment of just Rs 18,00,000.
Years to reach Rs 2 crore corpus from Rs 10,000 monthly SIP?

Years to reach Rs 2 crore corpus from Rs 10,000 monthly SIP? (At 12% growth)

Years to reach Rs 2 crore corpus from Rs 10,000 monthly SIP? (At 14% growth)

Years to reach Rs 3 crore corpus from Rs 10,000 monthly SIP? (At 12% growth)

Years to reach Rs 3 crore corpus from Rs 10,000 monthly SIP? (At 14% growth)

Years to reach Rs 4 crore corpus from Rs 10,000 monthly SIP? (At 12% growth)

Years to reach Rs 4 crore corpus from Rs 10,000 monthly SIP? (At 14% growth)

How is compounding playing its role?
