When investors think of investing, they often think of a big amount, believing that a big amount can give them big returns. But to your surprise, even a small amount can make a big difference. For example, if you start your investment journey with a small amount of Rs 4,000 to Rs 9,000, you can end up creating a huge corpus of Rs 90 lakh, that too soon. The major factor to note here is investment strategy; with discipline and consistency, you can achieve your target goal with ease. On that note, explore the details below to find out how quickly you can generate Rs 90 lakh by investing just Rs 4,000, Rs 6,000, and Rs 9,000 monthly in a systematic investment plan.
Also read: SIP Calculation: Rs 12,000/month investment, how soon can you generate Rs 1 crore corpus?
Understanding compounding?
With the help of compounding, one can generate returns not only on the principal investment amount but also on the accumulated returns. It helps to grow your wealth in the long run. The secret to benefiting from compounding is to start early and stay consistent with your investment.
Understanding SIP?
A systematic investment plan(SIP) allows investors to invest a fixed amount in mutual funds. As an investor, you can either invest daily, weekly, monthly, quarterly, or yearly, depending on your choice. Plus, you can start your investment journey with a small amount of Rs 100.
How does SIP work?
A systematic investment plan allows investors to invest a fixed amount regularly. You can set up a SIP with a mutual fund company and instruct them to deduct a fixed amount from your bank account at regular intervals.
Benefits of SIP?
SIPs can help you build wealth in the long run through compounding and the power of regular investing.
They can make investing more manageable and less stressful by eliminating the need to time the market.
SIP calculation conditions
- Target corpus: Rs 90 lakh corpus
- Monthly investment: Rs 4,000, Rs 6,000, Rs 9,000
- Annualised return: 12 per cent
How long will it take to build Rs 90 lakh with Rs 4,000 monthly SIP?
It will take approximately 28 years to generate Rs 90 lakh corpus.
How much can Rs 4,000 monthly SIP build in 28 years?
The investment amount will be Rs 13,44,000, the capital gains will be Rs 83,94,228, and the estimated retirement corpus will be Rs 97,38,228.
How long will it take to build Rs 90 lakh with Rs 6,000 monthly SIP?
It will take approximately 24 years to generate Rs 90 lakh corpus.
How much can Rs 6,000 monthly SIP build in 24 years?
The investment amount will be Rs 17,28,000, the capital gains will be Rs 73,22,572, and the estimated retirement corpus will be Rs 90,50,572.
How long will it take to build Rs 90 lakh with Rs 9,000 monthly SIP?
It will take approximately 21 years to generate Rs 90 lakh corpus.
How much can Rs 9,000 monthly SIP build in 21 years?
The investment amount will be Rs 22,68,000, the capital gains will be Rs 71,19,061, and the estimated retirement corpus will be Rs 93,87,061.
DISCLAIMER: Not financial advice; invest at your own risk
