Retirement Planning: It’s never too late to start planning for your retirement. You can begin building your post-retirement corpus whenever you choose. The key is to make a plan and start accumulating funds for your retirement. By doing so, you ensure that in your old age, you won’t have to rely on anyone else for your daily expenses.
Confused about where to invest?
If you want to build a substantial corpus for your retirement, then there are numerous investment options available in the market. However, one of the most popular and effective options is the mutual fund SIP (Systematic Investment Plan). By consistently investing a portion of your salary into a SIP, you can become a crorepati over time.
Retirement Planning: How much money you can build with Rs 20K monthly SIP investment in 20 years?
If you want to build a retirement corpus with Rs 20,000 monthly SIP, then you have to plan and invest in SIP strategically. How much money you can build with this amount depends on the annualised return you will receive. It’s important to know that SIP is a market-linked scheme, so returns are not guaranteed. The 12 per cent annualised return is an average return (for equity funds), and actual returns may vary depending on market conditions. In this article, we will calculate the return received between 12 per cent to 15 per cent.
Suppose you are investing Rs 20,000 monthly in SIP for 20 years. Then, according to the SIP calculator, you will invest a total of Rs 48,00,000. Now let’s calculate the capital gain and the total amount received at 12%, 13%, 14%, and 15% annualised return –
How much money you can build with Rs 20K monthly SIP investment: If annualised return is 12%
With an annualised return of 12 per cent, the estimated capital gain could be around Rs 1,51,82,958. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 1,99,82,958 over 20 years.
How much money you can build with Rs 20K monthly SIP investment: If annualised return is 13%
With an annualised return of 13 per cent, the estimated capital gain could be around Rs 1,81,10,383. Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 2,29,10,383 over 20 years.
How much money you can build with Rs 20K monthly SIP investment: If annualised return is 14%
With an annualised return of 14 per cent, the estimated capital gain could be around Rs 2,15,26,926. Over 20 years, your investment could grow to approximately Rs 2,63,26,926.
How much money you can build with Rs 20K monthly SIP investment: If annualised return is 15%
With an annualised return of 15 per cent, the estimated capital gain could be around Rs 2,55,19,099. Over 20 years, your investment could grow to approximately Rs 3,03,19,099.
Benefits of SIP
Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost averaging, which helps mitigate losses. However, keep in mind the inherent risks of investing in SIP and plan accordingly.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
