From Rs 15,000 Step-up SIP to Rs 40 Crore Corpus: Often we delay investments because we want to start with a big amount.

But the cost of delay is immense in investment, as one may come up short of their retirement corpus by a huge margin compared to their peer who started a few years earlier.

The ideal way can be to start with a small investment and step it up as our income increases.

Even if we follow this method, even a small beginning can lead you to a large corpus in the long term.

It may be possible that starting with a Rs 15,000 monthly investment, increasing the amount every year, and getting a 15 per cent annualised return, one may generate a corpus of over Rs 40 crore.

Know how it may be possible!

How to create retirement corpus from monthly salary

Discipline is the first key to investing.

It should be inculcated from the beginning of one’s career.

One can start their investment journey with at least 10 per cent of their monthly income, or if they don’t have many responsibilities or other expenses to bear, they can invest 20 per cent or their pay or more than that. 

How small beginning can generate large corpus

Let’s see a couple of examples here. We are taking the example of a person who earns Rs 20,000 a month and decides to invest 20 per cent of their income in a mutual fund systematic investment plan (SIP) every month.

They decide to increase their amount by 5 per cent every year and expect a 12 per cent annualised return.

Let’s see how much corpus they can create if they start their investment at the age of 25 and continue it till 60.

In 35 years, their total investment will be Rs 43,35,375, estimated capital gains will be Rs 3,01,58,684, and the estimated corpus will be Rs 3,44,94,059.

From Rs 2,000 step up SIP to Rs 3.16 cr corpus

In this example, we start with a smaller amount of Rs 2,000 monthly SIP investment but top it up by 10 per cent every year.

Let’s see how much corpus one may create if they do it for 35 years.

In 35 years, their total investment will be Rs 65,04,585, estimated capital gains will be Rs 2,50,25,068, and the estimated corpus will be Rs 3,15,29,653.

In both examples, you can see that, starting from a small amount and stepping it up yearly, one can create corpuses of more than Rs 3.15 crore.

From Rs 15,000 SIP to Rs 40 crore corpus

Here, we are taking the example of a Rs 15,000 monthly SIP investment, where the annual step up will be 10 per cent, the expected annualised return will be 15 per cent, and the investment duration will be 35 years.

Let’s see how it can create a corpus worth over Rs 40 crore in the long term.

In 35 years, the total investment will be Rs 4,87,84,386, the estimated capital gains will be Rs 35,95,56,572 and the estimated corpus will be Rs 40,83,40,959.

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)