SIP Calculation: By investing a specific amount at periodic intervals, like every month, through a Systematic Investment Plan (SIP), you can grow your corpus. A Systematic Investment Plan (SIP) is an investment strategy that provides you with the opportunity to invest a fixed amount of money at regular intervals in a mutual fund or scheme of your choice. To initiate a SIP, you direct a mutual fund company to automatically debit a fixed amount from your bank account and invest the amount in your selected mutual fund scheme. On that note, let’s find out how quickly you can generate over Rs 15 crore corpus with a monthly investment of Rs 20,000 in SIP.
What is SIP?
In simple words, SIP is similar to a recurring deposit where you deposit a small /fixed amount every month. SIP is a very convenient method of investing in mutual funds through standing instructions to debit money from your bank account every month, without the hassle of having to write out a cheque each time.
What is the role of power of compounding?
Compounding is when the return you earn is reinvested in the original corpus, and the accumulated corpus continues to grow. Every time this happens, your investment keeps growing, paving the way for a systematic accumulation of money, multiplying over time.
SIP calculation conditions
- Target corpus: Over Rs 15 crore
- Monthly investment: Rs 20,000
- Annualised return: 12 per cent
How much can Rs 20,000 monthly SIP build in 10 years?
The investment amount will be Rs 24,00,000, the capital gains will be Rs 20,80,718, and the estimated retirement corpus will be Rs 44,80,718.
How much can Rs 20,000 monthly SIP build in 20 years?
The investment amount will be Rs 48,00,000, the capital gains will be Rs 1,35,97,147, and the estimated retirement corpus will be Rs 1,83,97,147.
How much can Rs 20,000 monthly SIP build in 30 years?
The investment amount will be Rs 72,00,000, the capital gains will be Rs 5,44,19,464, and the estimated retirement corpus will be Rs 6,16,19,464.
How much can Rs 20,000 monthly SIP build in 38 years?
The investment amount will be Rs 91,20,000, the capital gains will be Rs 14,65,88,004, and the estimated retirement corpus will be Rs 15,57,08,004.
How quickly can you build over Rs 15 crore with Rs 20,000 monthly SIP?
It will take approximately 38 years to build over Rs 15 crore with Rs 20,000 monthly investment.
