Power of Rs 10,000 SIP: Everyone desires a comfortable and financially stable post-retirement life, but only a few realise the importance of starting retirement planning and investing early. This is because beginning early allows your investments ample time to grow, thanks to the power of compounding.
To understand how, let’s put you in three different situations where you are investing some amount in SIP mutual funds every month. Using the concept of compounding, we will calculate the time it will take to reach your goal.
But, before jumping into the calculations, let’s first understand these three scenarios.
Scenario 1: You aim to build a retirement corpus of Rs 3 crore with a monthly SIP of Rs 10,000.
Scenario 2: You aim to build a retirement corpus of Rs 5 crore with a monthly SIP of Rs 10,000.
Scenario 3: You aim to build a retirement corpus of Rs 7 crore with a monthly SIP of Rs 10,000.
Now, we’ll calculate the time required to achieve retirement corpus of Rs 3 crore, Rs 5 crore, and Rs 7 crore, respectively, assuming a consistent monthly SIP of Rs 10,000 and an average annual return rate of 13 per cent.
How quickly can you generate over Rs 3 crore retirement corpus with a Rs 10,000 monthly SIP?
If you want to build a retirement corpus of over Rs 3 crore with a Rs 10,000 monthly investment, then you need to invest in SIP mutual funds for at least 29 years.
Generate over Rs 3 crore corpus with Rs 10,000 monthly SIP in 29 years: Calculations
- Total Investment: Rs 34,80,000
- Estimated Capital Gain: Rs 2,96,94,246
- Total Corpus Received: Rs 3,31,74,246
How quickly can you generate over Rs 5 crore retirement corpus with a Rs 10,000 monthly SIP?
You will need to invest Rs 10,000 monthly in SIP for at least 33 years to build a retirement corpus of over Rs 5 crore, the calculation shows.
Generate over Rs 5 crore corpus with Rs 10,000 monthly SIP in 33 years: Calculations
- Total Investment: Rs 39,60,000
- Estimated Capital Gain: Rs 5,07,51,924
- Total Corpus Received: Rs 5,47,11,924
How quickly can you generate over Rs 7 crore retirement corpus with a Rs 10,000 monthly SIP?
To build a retirement corpus of over Rs 7 crore with a Rs 10,000 monthly SIP, you need to invest for at least 35 years.
Generate over Rs 7 crore with Rs 10,000 monthly SIP in 35 years: Calculations
- Total Investment: Rs 42,00,000
- Estimated Capital Gain: Rs 6,59,34,918
- Total Corpus Received: Rs 7,01,34,918
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
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/
