Power of Compounding: Planning for your future financial needs, like buying a house, children’s education, marriage, medical emergencies, etc., during the earning phase is always considered a wise move for a person. It ensures that you won’t have to borrow money from others for any important need in your life. For these investments, there are numerous options available in the market, and one of them is SIP in mutual funds. It is a market-linked investment that helps to build a sustainable corpus using the power of compounding. 

If you want to build a substantial corpus with a Rs 25,000 monthly investment, then you have to plan and invest in SIP strategically. In this write-up, we will calculate how much corpus you can generate in 25 years with a Rs 25,000 monthly investment. 

How much corpus can you build in 25 years if annualised return is 12%?

With a Rs 25,000 monthly SIP investment for 25 years, assuming an average return rate of 12 per cent, you can generate over Rs 4.2 crore corpus.

Build over Rs 4.2 crore with Rs 25,000 monthly SIP: Calculating average investment

In 25 years, you will invest a total of Rs 75,00,000.

Build over Rs 4.2 crore with Rs 25,000 monthly SIP: Calculating average capital gain

In terms of capital gain, a total of Rs 3,50,55,164 (average) will be received. It should be noted that this is an expected return, and the actual amount may vary depending on the market condition. 

Build over Rs 4.2 crore with Rs 25,000 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 4,25,55,164.

Full Calculation: You become the owner of Rs 4.2 crore after 25 years

Total Investment Amount: Rs 75,00,000
Capital Gains: Rs 3,50,55,164
Total Approx. Return: Rs 4,25,55,164

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