Compounding in investment plays an important role in growing your wealth in the long run. It prepares you for a better tomorrow, irrespective of your investment amount. Even if you invest a small amount, your money will grow over time with the help of the power of compounding. The key to benefiting from compounding is consistency, disciplined investment strategy, and early investment. Thus, let’s find out how many years it can take to generate a Rs 13 crore corpus with Rs 15,000 monthly investment in a systematic investment plan, which is popularly known as SIP.
What is SIP?
A systematic investment plan is a process through which investors invest a fixed amount in a mutual fund scheme at regular intervals. You can change the investment amount according to your financial circumstances.
Investment in a Systematic Investment Plan (SIP)
The investment in SIP can be done according to the choice of the investor’s investment capacity- daily, weekly, monthly, quarterly, half-yearly, or yearly.
Early investment
Starting to invest early can help individuals meet their financial goals on time. It can be more advantageous for investors than starting it late.
Benefits of compounding
Encourages long-term financial goal planning
Investors savings can grow faster
Reduces risk
Disciplined approach
A disciplined investment with a consistent contribution can help investors create a large retirement corpus with the effect of the power of compounding.
SIP calculation conditions
Target corpus: Rs 13 crore
Monthly investment: Rs 15,000
Annualised return: 12 per cent
In how many years can you build Rs 13 crore corpus?
It will take approximately 40 years to achieve this target corpus.
How much can Rs 15,000 SIP build in 10 years?
During that time, the estimated invested amount will be Rs 18,00,000, and the estimated capital gains will be Rs 15,60,538. The estimated retirement corpus will be Rs 33,60,538.
How much can Rs 15,000 SIP build in 15 years?
During that time, the estimated invested amount will be Rs 27,00,000, and the estimated capital gains will be Rs 44,38,971. The estimated retirement corpus will be Rs 71,38,971.
How much can Rs 15,000 SIP build in 20 years?
During that time, the estimated invested amount will be Rs 36,00,000, and the estimated capital gains will be Rs 1,01,97,860. The estimated retirement corpus will be Rs 1,37,97,860.
How much can Rs 15,000 SIP build in 25 years?
During that time, the estimated invested amount will be Rs 45,00,000, and the estimated capital gains will be Rs 2,10,33,099. The estimated retirement corpus will be Rs 2,55,33,099.
How much can Rs 15,000 SIP build in 30 years?
During that time, the estimated invested amount will be Rs 54,00,000, and the estimated capital gains will be Rs 4,08,14,598. The estimated retirement corpus will be Rs 4,62,14,598.
How much can Rs 15,000 SIP build in 35 years?
During that time, the estimated invested amount will be Rs 63,00,000, and the estimated capital gains will be Rs 7,63,62,467. The estimated retirement corpus will be Rs 8,26,62,467.
How much can Rs 15,000 SIP build in 39 years?
During that time, the estimated invested amount will be Rs 70,20,000, and the estimated capital gains will be Rs 12,39,66,221. The estimated retirement corpus will be Rs 13,09,86,221.
Also Read: Rs 5,000 SIP Vs Rs 5,00,000 Lump Sum: Which can generate a higher corpus in 30 years?
