Systematic Investment Plans (SIPs) offer several benefits. Some SIPs in mutual funds allow you to start investing with a small amount, like Rs 100. You get access to high liquidity, meaning you can withdraw your money when needed. However, early withdrawals might come with fees. SIPs also benefit from compounding, which helps grow your wealth over time. Let’s calculate how long it would take to reach a goal of Rs 1 crore by investing Rs 9,000 every month through an SIP.
How does compounding work?
Compounding means your investment earns returns on both the initial amount and the returns that have already grown. The key to making the most of compounding is to start investing early and keep investing regularly.
What is a Systematic Investment Plan (SIP)?
SIP lets you invest a fixed amount regularly in mutual funds, which can be done daily, weekly, monthly, quarterly, or yearly, depending on what suits you best. This way, you can steadily build your investment over time.
How does SIP work?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly. You can set up a SIP with a mutual fund company, instructing them to deduct a specified amount from your bank account at regular intervals, such as monthly, and invest it in your chosen mutual fund scheme. This approach helps you invest disciplined way and build wealth over time.
Why should you invest early?
To get maximum returns from investment in the long run, one should start investing early.
SIP calculation conditions
- Target corpus: Rs 1 crore corpus
- Monthly investment: Rs 9,000
- Annualised return: 12 per cent
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 15 years?
The investment amount will be Rs 16,20,000, the capital gains will be Rs 26,63,383, and the estimated retirement corpus will be Rs 42,83,383.
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 22 years?
The investment amount will be Rs 23,76,000, the capital gains will be Rs 82,52,406, and the estimated retirement corpus will be Rs 1,06,28,406.
How fast can you build Rs 1 crore with Rs 9,000 monthly SIP?
It will take approximately 22 years to build Rs 1 crore with Rs 9,000 monthly investment.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
