A Systematic Investment Plan (SIP) is an investment strategy that provides you with the opportunity to invest a fixed amount of money at regular intervals in a mutual fund or scheme of your choice. It is not a fund, but a mode to invest in equity-related funds or other schemes. Let's see how much time it will take to accumulate over Rs 9 crore corpus investing Rs 20,000 per month through SIP.
What is a Systematic Investment Plan (SIP)?
SIP, or Systematic Investment Plan, helps investors invest systematically into their preferred mutual fund scheme. It facilitates periodic investments of a predetermined amount, which can be invested on a daily, weekly, monthly, quarterly, or annual basis, as desired.
How does SIP work?
By investing a specific amount at periodic intervals, like every month, through a Systematic Investment Plan (SIP), you can grow your corpus. To initiate a SIP, you direct a mutual fund company to automatically debit a fixed amount from your bank account and invest the amount in your selected mutual fund scheme. This regular discipline can help you grow your wealth over time.
SIP calculation conditions
- Target corpus: Over Rs 9 crore
- Monthly investment: Rs 20,000
- Annualised return: 12 per cent
How much can Rs 20,000 monthly SIP build in 10 years?
The investment amount will be Rs 24,00,000, the capital gains will be Rs 20,80,718, and the estimated retirement corpus will be Rs 44,80,718.
How much can Rs 20,000 monthly SIP build in 20 years?
The investment amount will be Rs 48,00,000, the capital gains will be Rs 1,35,97,147, and the estimated retirement corpus will be Rs 1,83,97,147.
How much can Rs 20,000 monthly SIP build in 30 years?
The investment amount will be Rs 72,00,000, the capital gains will be Rs 5,44,19,464, and the estimated retirement corpus will be Rs 6,16,19,464.
How much can Rs 20,000 monthly SIP build in 34 years?
The investment amount will be Rs 81,60,000, the capital gains will be Rs 9,00,19,725, and the estimated retirement corpus will be Rs 9,81,79,725.
How quickly can you build over Rs 9 crore with Rs 20,000 monthly SIP?
It will take approximately 34 years to build over Rs 9 crore with Rs 20,000 monthly investment.
