Power of Compounding: Anyone can build a substantial corpus with consistent and disciplined contributions. All they need to do is invest in a good option. If you’re looking to invest a portion of your salary, you may consider a Systematic Investment Plan (SIP) in mutual funds.
What is SIP?
It is a market-linked investment option that allows investors to invest a fixed amount at regular intervals—such as monthly, quarterly, or annually—rather than making a lump sum investment.
Power of Compounding
One of the best parts of SIP is that you’ll earn interest not only on your principal amount but also on the capital gains. This means that SIP leverages the power of compounding and has the potential to grow your investment over time.”
In this write-up, we will explain, through calculations, how much corpus you can build in 15 years with a Rs 1,000 monthly investment –
Power of Compounding: How much corpus you can build in 15 years with Rs 1000 monthly investment?
According to the calculator, you can build Rs 5 lakh (approx) in 15 years with a Rs 1,000 monthly investment. Let’s know how –
Suppose you are investing Rs 1,000 monthly in an SIP mutual fund for 15 years. Then in these years, your total investment will be Rs 1,80,000. Assuming an average annual return of 12 per cent, your expected capital gain would be Rs 3,24,576. Therefore, by the end of 15 years, your total corpus would grow to approximately Rs 5,04,576.
Full Calculations –
Invested Amount: Rs 1,80,000
Capital Gain: Rs 3,24,576
Total Value: Rs 5,04,576
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 14 per cent and 15 per cent, then how much wealth can you accumulate in 15 years –
Calculations if annualised return is 14%
According to the calculations, you can build an approximate corpus of Rs 6,12,854 in 15 years if the annualised return is 14 per cent.
Calculations if annualised return is 15%
According to the calculations, you can build an approximate corpus of Rs 6,76,863 in 15 years if the annualised return is 15 per cent.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)