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Through a Systematic Investment Plan (SIP), you can invest a fixed amount regularly in mutual funds, such as daily, weekly, quarterly, or monthly. A Systematic Investment Plan (SIP) is an investment strategy by which you can invest a certain amount at regular intervals in a mutual fund or scheme of your preference. It is not a fund, but more like a tool to invest in equity-based funds or other schemes. On that note, let's find out how long it can take to build Rs 5 crore corpus with a monthly SIP investment of Rs 20,000 monthly investment in SIP.
What is a Systematic Investment Plan (SIP)?
SIP, or Systematic Investment Plan, helps investors invest in their preferred mutual fund scheme systematically. It facilitates automatic investing of a specified amount of money at regular intervals, ranging from daily to annually, as per one's desires.
How does SIP work?
With a Systematic Investment Plan (SIP), you can invest a certain amount at fixed intervals, e.g., monthly. To open a SIP, you get a mutual fund company to draw a predetermined amount from your bank account and invest it in your preferred mutual fund scheme. This regular investment helps you create wealth over time.
SIP calculation conditions
- Target corpus: Rs 5 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 15 years?
The investment amount will be Rs 36,00,000, the capital gains will be Rs 59,18,628, and the estimated retirement corpus will be Rs 95,18,628.
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 29 years?
The investment amount will be Rs 69,60,000, the capital gains will be Rs 4,78,29,406, and the estimated retirement corpus will be Rs 5,47,89,406.
How quickly can you build over Rs 5 crore corpus with Rs 20,000 monthly SIP?
It will take approximately 29 years to build over Rs 5 crore with Rs 20,000 monthly investment.
Also Read: Rs 7,000 SIP Vs Rs 7,00,000 Lump Sum: Which can generate a higher corpus in 30 years?
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