In a Systematic Investment Plan (SIP), you have numerous advantages, one of which is the ability to start with as little as Rs 100. Many SIPs allow investors to begin investing with this small amount. Also, SIPs offer liquidity, enabling investors to withdraw or redeem their invested funds, subject to the fund’s terms and conditions, and potentially incurring exit loads or other charges. It is essential to note that while SIPs provide liquidity, instant access to cash may not be possible due to potential exit loads (fees) for early withdrawals. Furthermore, the power of compounding plays a major role in growing your wealth over the long term. Now, let’s explore how quickly you can generate a Rs 13 crore corpus by investing Rs 14,000 monthly in a SIP.
Power of 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 a Systematic Investment Plan (SIP)?
SIP is a popular way to invest in mutual funds, as it allows investors to channel their funds steadily into their mutual fund scheme of choice. It allows investors to invest a fixed amount in mutual funds. You can invest daily, weekly, monthly, quarterly, or yearly, depending on your choice.
How does SIP work?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly. You can set up a SIP with a mutual fund company, instructing them to deduct a specified amount from your bank account at regular intervals, such as monthly, and invest it in your chosen mutual fund scheme. This approach helps you invest disciplined way and build wealth over time.
What are benefits of Systematic Investment Plan?
- Helps build wealth over time
- Makes investing regular and stress-free
- No need to worry about market timing
Why should you invest early?
To get maximum returns from investment in the long run, one should start investing early.
SIP calculation conditions
- Target corpus: Rs 13 crore corpus
- Monthly investment: Rs 14,000
- Annualised return: 12 per cent
How much can Rs 14,000 monthly SIP build in 10 years?
The investment amount will be Rs 16,80,000, the capital gains will be Rs 14,56,502, and the estimated retirement corpus will be Rs 31,36,502.
How much can Rs 14,000 monthly SIP build in 20 years?
The investment amount will be Rs 33,60,000, the capital gains will be Rs 95,18,003, and the estimated retirement corpus will be Rs 1,28,78,003.
How much can Rs 14,000 monthly SIP build in 30 years?
The investment amount will be Rs 50,40,000, the capital gains will be Rs 3,80,93,625, and the estimated retirement corpus will be Rs 4,31,33,625.
How much can Rs 9,000 monthly SIP build in 40 years?
The investment amount will be Rs 67,20,000, the capital gains will be Rs 13,03,82,994, and the estimated retirement corpus will be Rs 13,71,02,994.
How quickly can you build over Rs 13 crore with Rs 14,000 monthly SIP?
It will take approximately 40 years to build over Rs 13 crore with Rs 14,000 monthly investment.
Also Read: Power of 10,000 SIP: How soon can you generate Rs 1 crore corpus with Rs 10,000 monthly investment?
