SIP Investment for 15 years: How much wealth you can generate with Rs 15,000 monthly investment | See calculation
SIP investment for 15 years: Systematic Investment Plan, commonly known as SIP, is a market-linked investment where investors are allowed to invest a fixed amount at regular intervals. Since it is linked to the stock market, there is risk involved. But strategically planned investment in SIP mutual funds can help you create enough wealth for your future. To understand this in a better way, let's take an example where you are investing Rs 15,000 every month in a SIP mutual fund for 15 years. Now, in this write-up, we will calculate how much wealth you can earn -
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
What is SIP?
SIP in mutual funds is an investment strategy linked to the stock market.
Understanding SIP
This investment strategy allows investors to invest a fixed amount at regular intervals.
Flexibility in SIP
SIP offers investment flexibility, i.e., you can invest money on a monthly, quarterly or yearly basis depending on your choice.
Other benefits of SIP
- Rupee cost averaging
- Power of compounding
Understanding power of compounding
The power of compounding creates a snowball effect that helps your investments grow exponentially over time.
Assuming an average return rate of 12%
It should be noted that for all the calculations, we are assuming the average return rate of 12 per cent.
How much wealth can you generate in 15 years with a Rs 15,000 monthly SIP?
According to the calculations, you will generate around Rs 71 lakhs corpus in 15 years if you invest Rs 15,000 monthly in an SIP.
Rs 71 lakhs corpus in 15 years: Calculating average investment
In 15 years, you will have a total investment of Rs 27,00,000 with a monthly SIP investment of Rs 15,000.
Rs 71 lakhs corpus in 15 years: Calculating average capital gain
With a monthly SIP investment of Rs 15,000, you can expect a total of Rs 44,38,971 (on average) as capital gains.
Actual return may vary
However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
Rs 71 lakhs corpus in 15 years: Final Corpus Received
Consequently, at the end of 15 years, including the principal investment and capital gain, you will get a total of Rs 71,38,971.
Full Calculation
- Total Investment Amount: Rs 27,00,000
- Capital Gains: Rs 44,38,971
- Total Approx. Return: Rs 71,38,971