Power of Compounding: How quickly you can build Rs 8 crore corpus with just Rs 7,000, Rs 11,000 or Rs 16,000 monthly investments
Every little bit counts when it comes to investing. Even small amounts can add up to a sizeable amount over time. Don't underestimate the power of saving a little each month. For example, investing just Rs 7,000 monthly through a Systematic Investment Plan (SIP) can help you build a massive corpus of Rs 8 crore. Let's understand it through calculations.
Saving money is a great habit to get into, no matter how small the amount. Even Rs 7,000 a month can add to a huge sum over time. With a Systematic Investment Plan (SIP), you can turn your small investment into a massive corpus. Here, we will talk about how investing Rs 7,000 to Rs 16,000 a month can help you build a huge corpus of Rs 8 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 SIP
A systematic investment plan is a disciplined investment approach where you invest a fixed amount of money at regular intervals.
Why Choose SIP?
It is beginner-friendly
Encourages disciplined investing
Encourages long-term financial goal planning
What is minimum amount to start SIP
You can start investing in SIP with a small amount of Rs 100.
SIP calculation conditions
Target corpus: Rs 8 crore
Monthly investments: Rs 7,000, Rs 11,000, Rs 16,000
Annualised return: 12 per cent
How long it will take to build Rs 8 crore corpus with Rs 7,000 monthly SIP
It will approximately take 40 years to build Rs 8 crore corpus.
How long it will take to build Rs 8 crore corpus with Rs 11,000 monthly SIP
It will approximately take 36 years to build Rs 8 crore corpus.
How long it will take to build Rs 8 crore corpus with Rs 16,000 monthly SIP
It will approximately take 33 years to build Rs 8 crore corpus.
From Rs 7,000 monthly SIP to Rs 8 crore corpus
The investment amount will be Rs 33,60,000, the estimated capital gains will be Rs 7,98,16,942, and the estimated retirement corpus will be Rs 8,31,76,942.
From Rs 11,000 monthly SIP to Rs 8 crore corpus
The investment amount will be Rs 47,52,000, the estimated capital gains will be Rs 7,58,98,252, and the estimated retirement corpus will be Rs 8,06,50,252.
From Rs 16,000 monthly SIP to Rs 8 crore corpus
The investment amount will be Rs 63,36,000, the estimated capital gains will be Rs 7,51,67,969, and the estimated retirement corpus will be Rs 8,15,03,969.