Retirement Planning via Rs 20,000 monthly SIP: Can you guess how many years it takes to build Rs 1 crore, Rs 3 crore, Rs 5 crore corpus?

SIP or Systematic Investment Plan is a method of investing in mutual funds where an investor contributes a fixed amount regularly based on their financial capacity.

The interval for investing money can be monthly, weekly, or annually.

- Market-linked investment option - Generally offers 12% annual return (average) - Power of compounding - Rupee cost averaging - Risk tolerance

In this write-up, we will calculate the time period required to build a retirement corpus of Rs 1 crore, Rs 3 crore, and Rs 5 crore with a monthly SIP of Rs 20,000. 

 

Also Read: FD Rates For Rs 7 Lakh Investment: Compare SBI, PNB, HDFC Bank, ICICI Bank, and Post Office 3-year fixed deposit returns

According to the calculation, you need to invest for at least 16 years to build a retirement corpus of Rs 1 crore with 20,000 monthly SIP.

Total Investment: Rs 38,40,000 Estimated Capital Gain: Rs 70,76,193 Total Corpus Received: Rs 1,09,16,193

You need to invest for at least 21 years to build a retirement corpus of Rs 3 crore with 20,000 monthly SIP, the calculation shows.

Total Investment: Rs 50,40,000 Estimated Capital Gain: Rs 1,58,20,135 Total Corpus Received: Rs 2,08,60,135

Also Read: SIP vs PPF for Rs 1,35,000/year investment: Which can create higher corpus in 15 years?

To build a retirement corpus of Rs 5 crore with 20,000 monthly SIP, you need to invest at least 24 years.

Total Investment: Rs 57,60,000 Estimated Capital Gain: Rs 2,44,08,573 Total Corpus Received: Rs 3,01,68,573