SIP Investment Strategy: Whether you are a salaried employee, small business owner, or individual, planning to accumulate money for post-retirement life is essential for everyone. It helps you become financially independent and enjoy a stress-free retirement. For those looking for an investment option to build a substantial corpus through consistent and disciplined contributions, a Systematic Investment Plan (SIP) in mutual funds can be very helpful.
What is an SIP?
In this write-up, we will explain, through calculations, how much time it will take to reach the Rs 1 crore target with Rs 1,500 monthly SIP investment.
SIP Investment Strategy: How many years will it take to reach the Rs 1 crore target with Rs 1,500 monthly SIP investment?
According to the calculator, you need to invest for at least 36 years in an SIP to build a corpus of Rs 1 crore. Let’s know how –
Suppose you are investing Rs 1,500 monthly in an SIP mutual fund for 36 years. Then in these years, your total investment will be Rs 6,48,000. Assuming an average annual return of 12 per cent, your expected capital gain would be Rs 1,03,49,762. Therefore, by the end of 36 years, your total corpus would grow to approximately Rs 1,09,97,762.
Full Calculations –
Invested Amount: Rs 6,48,000
Capital Gain: Rs 1,03,49,762
Total Value: Rs 1,09,97,762
Things to remember while investing in SIP
It’s important to understand that SIP is a market-linked scheme, so returns are not guaranteed. The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions. Let’s look at some examples of the annualised return is 13 per cent and 14 per cent, then how much wealth can you accumulate in 36 years –
Calculations if annualised return is 13%
According to the calculations, you can build an approximate corpus of Rs 1,45,68,810 in 36 years if the annualised return is 13 per cent.
Calculations if annualised return is 14%
According to the calculations, you can build an approximate corpus of Rs 1,93,84,377 in 36 years if the annualised return is 13 per cent.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)