Have you ever thought that just investing Rs 9,000 a month could give you a massive Rs 6 crore corpus for retirement? In this article, we will understand how investing regularly, through a mutual fund systematic investment plan (SIP), can add up to a huge amount in the long run. We will find out with the help of calculation how quickly you can achieve this target and we will also figure out what will be your exact retirement corpus at the end of the investment period. 

What is SIP in mutual fund?

A Systematic Investment Plan (SIP) is a way to invest a fixed amount in mutual funds. You can invest daily, weekly, monthly, quarterly, or yearly, depending on your choice. You can start investing with as little as Rs 100. You can also change the investment amount based on your financial circumstances. 

Planning to invest in SIP?

SIP is beginner-friendly, you can start by investing even a small of Rs 100 regularly. It is also convenient, with automated deductions you don’t have to worry about missing out on investment. The actual retirement corpus will vary based on fund performance and market conditions. 

Why should one start investing early?

To get maximum returns from investment in the long run one should start investing early. If you start investing early, your money has more time to grow in the long run.

SIP calculation conditions

• Target corpus: Rs 6 crore
• Monthly investment: Rs 9,000
• Annualised return: 12 per cent 

How long it will take to build Rs 6 crore corpus with Rs 9,000 monthly SIP

It will take approximately 37 years to generate Rs 6 crore.

How much can Rs 9,000 monthly SIP build in 10 years?

The investment amount will be Rs 10,80,000, the capital gains will be Rs 9,36,323, and the estimated retirement corpus will be Rs 20,16,323. 

How much can Rs 9,000 monthly SIP build in 20 years?

The investment amount will be Rs 21,60,000, the capital gains will be Rs 61,18,716, and the estimated retirement corpus will be Rs 82,78,716.

How much can Rs 9,000 monthly SIP build in 30 years?

The investment amount will be Rs 32,40,000, the capital gains will be Rs 2,44,88,759, and the estimated retirement corpus will be Rs 2,77,28,759.

How much can Rs 9,000 monthly SIP build in 37 years?

The investment amount will be Rs 39,96,000, the capital gains will be Rs 5,84,62,664, and the estimated retirement corpus will be Rs 6,24,58,664.

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