In a Systematic Investment Plan (SIP), investment in some mutual funds allows you to start investing with as little as Rs 100. The power of compounding plays an important role in long-term wealth growth. On that note, let’s calculate how quickly an Rs 16,000 monthly SIP can help generate over Rs 15 crore corpus.
What is compounding?
Compounding helps your investment generate returns not only on the principal investment amount but also on the accumulated returns. The secret to benefiting from compounding is to start early and stay consistent with your investment.
What is SIP?
A systematic investment plan(SIP) allows you to invest a fixed amount in mutual funds. You can invest daily, weekly, monthly, quarterly, or yearly, depending on your choice. Plus, you can start your investment journey with a small amount of Rs 100.
How does SIP work?
A systematic investment plan allows investors to invest a fixed amount regularly. You can set up a SIP with a mutual fund company and instruct them to deduct a fixed amount from your bank account at regular intervals.
Benefits of SIP?
SIPs can help you build wealth in the long run through compounding and the power of regular investing.
They can make investing more manageable and less stressful by eliminating the need to time the market.
Why should you go for early investment?
To get maximum returns from investment in the long run, one should start investing early.
SIP calculation conditions
Target corpus: Rs 15 crore corpus
Monthly investment: Rs 16,000
Annualised return: 12 per cent
How much can Rs 16,000 monthly SIP build in 10 years?
The investment amount will be Rs 19,20,000, the capital gains will be Rs 16,64,574, and the estimated retirement corpus will be Rs 35,84,574.
How much can Rs 16,000 monthly SIP build in 20 years?
The investment amount will be Rs 38,40,000, the capital gains will be Rs 1,08,77,718, and the estimated retirement corpus will be Rs 1,47,17,718.
How much can Rs 16,000 monthly SIP build in 30 years?
The investment amount will be Rs 57,60,000, the capital gains will be Rs 4,35,35,571, and the estimated retirement corpus will be Rs 4,92,95,571.
How much can Rs 16,000 monthly SIP build in 40 years?
The investment amount will be Rs 76,80,000, the capital gains will be Rs 14,90,09,136, and the estimated retirement corpus will be Rs 15,66,89,136.
How soon can Rs 16,000 monthly investment in SIP generate over Rs 15 crore corpus?
It will take approximately 40 years to build over Rs 15 crore with Rs 16,000 monthly investment.
Also Read: Power of 10,000 SIP: How soon can you generate Rs 1 crore corpus with Rs 10,000 monthly investment?
