Power of Compounding: If you want to accumulate a substantial corpus for your future needs and are looking for an investment option, then SIP can be a good option. It is a market-linked investment that helps investors to generate a corpus in the long term. It offers a 12 per cent average capital gain return and uses the power of compounding to generate interest on interest. Investors can invest small amounts periodically instead of lump sums.

SIP: Key Features

• Flexibility in investment
• Power of compounding
• Rupee cost averaging
• Risk tolerance

In this write-up, we will calculate how much corpus you can generate in 25 years with a Rs 17,000 monthly SIP investment, assuming an average return rate of 12 per cent.

So, how much corpus can one generate in 25 years if he/she invest Rs 17,000 monthly SIP?  

According to the calculations, you can generate over Rs 2.89 crore corpus with a Rs 17,000 monthly SIP investment in 25 years.

Build over Rs 2.89 crore with Rs 17,000 monthly SIP: Calculating average investment

In 25 years, you will invest a total of Rs 51,00,000.

Build over Rs 2.89 crore with Rs 17,000 monthly SIP: Calculating average capital gain

In terms of capital gain, a total of Rs 2,38,37,512 corpus will be received. It should be noted that this is an expected return, and the actual amount may vary depending on the market conditions. 

Build over Rs 2.89 crore with Rs 17,000 monthly SIP: Final Corpus Received

Consequently, at the end of 25 years, including the principal investment and capital gain, you will get a total of Rs 2,89,37,512.

Full Calculation: You become the owner of over Rs 2.89 crore after 25 years

• Total Investment Amount: Rs 51,00,000
• Capital Gains: Rs 2,38,37,512
• Total Approx. Return: Rs 2,89,37,512

(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)