Believe it or not, small, consistent investments can turn into a sizeable corpus in the long run. The secret lies in disciplined investment and starting early. Time is money, and the sooner you begin, the more your money can grow. Let’s explore how a a small monthly investment of Rs 7,000 can help you reach your massive goal of Rs 3 crore corpus.

Systematic Investment Plan

SIP is a way to invest in mutual funds regularly. Depending on your preference, you can invest a fixed amount daily, weekly, monthly, quarterly, or yearly.

Why SIP?

SIP is great for beginners. You can start investing with as little as Rs 100 regularly, making it easy for first-time investors to grow their money over time. It’s also convenient since the amount is deducted automatically, you don’t have to worry about missing an investment.

Benefit of investing early?

To get maximum returns from investment in the long run one should start investing early. Let’s understand it through an example.

Example of early investment

Rahul starts investing Rs 1,000 per month at age 20.
After 40 years, he gets an estimated Rs 1.18 crore.

His friend, Rohan, starts investing Rs 1,000 per month at age 30.
After 30 years, he gets Rs 35 lakh.

Rahul started 10 years earlier and got 3 times more returns.

SIP calculations

• Target corpus: Rs 3 crore
• Monthly investment: Rs 7,000
• Annualised return: 12 per cent

How long it will take to build Rs 3 crore with Rs 7,000 monthly SIP

It will take approximately 33 years to generate Rs 3 crore.

How much can Rs 7,000 monthly SIP build in 10 years?

The investment amount will be Rs 8,40,000, the capital gains will be Rs 7,28,251, and the estimated retirement corpus will be Rs 15,68,251. 

How much can Rs 7,000 monthly SIP build in 20 years?

The investment amount will be Rs 16,80,000, the capital gains will be Rs 47,59,001, and the estimated retirement corpus will be Rs 64,39,001.

How much can Rs 7,000 monthly SIP build in 30 years?

The investment amount will be Rs 25,20,000, the capital gains will be Rs 1,90,46,812, and the estimated retirement corpus will be Rs 2,15,66,812.

How much can Rs 7,000 monthly SIP build in 33 years?

The investment amount will be Rs 27,72,000, the capital gains will be Rs 2,78,29,374, and the estimated retirement corpus will be Rs 3,06,01,374.

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