Saving money is a great habit to get into, no matter how small the amount. Once you develop a habit of saving each month, those days are not far from when you will start investing. Even Rs 7,000 a month can add up to a huge sum in the long run. With a Systematic Investment Plan (SIP), you can turn your small investment into a massive corpus. Here, we will discuss how investing Rs 7,000 to Rs 16,000 a month can help you build a huge corpus of Rs 6 crore.
What is a Systematic Investment Plan (SIP)?
A systematic investment plan allows you to invest a fixed amount of money in SIP mutual fund(s) regularly.
What is the minimum amount to begin SIP?
Investors can start investing in SIP with a small amount of Rs 100.
Why should one opt for SIP?
- A systematic investment plan is believed to be beginner-friendly
- It encourages disciplined investment
- SIP meets long-term and short-term financial goal-planning
SIP calculation conditions
- Target corpus: Rs 6 crore
- Monthly investments: Rs 7,000, Rs 11,000, Rs 16,000
- Annualised return: 12 per cent
How long it will take to build Rs 6 crore corpus with Rs 7,000 monthly SIP?
It will take approximately 39 years to build Rs 6 crore corpus.
How long it will take to build Rs 6 crore corpus with Rs 11,000 monthly SIP?
It will take approximately 35 years to build Rs 6 crore corpus.
How long it will take to build Rs 6 crore corpus with Rs 16,000 monthly SIP?
It will take approximately 32 years to build Rs 6 crore corpus.
What will be your retirement corpus with Rs 7,000 monthly SIP?
The investment amount will be Rs 32,76,000, the estimated capital gains will be Rs 5,78,50,903, and the estimated retirement corpus will be Rs 6,11,26,903.
What will be your retirement corpus with Rs 11,000 monthly SIP?
The investment amount will be Rs 46,20,000, the estimated capital gains will be Rs 5,59,99,142, and the estimated retirement corpus will be Rs 6,06,19,142.
What will be your retirement corpus with Rs 16,000 monthly SIP?
The investment amount will be Rs 61,44,000, the estimated capital gains will be Rs 5,61,25,404, and the estimated retirement corpus will be Rs 6,22,69,404.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
