Mutual Fund SIP calculation: Starting a monthly Systematic Investment Plan (SIP) in mutual funds is considered a good way for generating wealth in the long term. With the help of SIP, you can make a disciplined investment with a fixed amount on a monthly, weekly, bi-monthly, quarterly, half-yearly or yearly basis.
Here’s a look at how much time and investment it may take to get Rs 20 lakh from your monthly SIP investment, assuming 12% annual returns, as per FundsIndia’s ‘Wealth Conversations Report’ for April 2023.
In the last decade, several mutual funds have given high annualised returns of over 12%. However, investors should always consult their financial planners to find the best fund suitable for them as per their financial goals.
Rs 10,000 SIP: A monthly SIP of Rs 10,000 will help you reach Rs 20 lakh in 9 years and 2 months at 12% CAGR.
Also Read: Mutual Fund SIP for Rs 10 lakh: How much time and investment will it take?
Rs 20,000 SIP: A monthly SIP of Rs 20,000 will help you reach Rs 20 lakh in 5 years and 10 months at 12% CAGR.
Rs 25,000 SIP: A monthly SIP of Rs 25,000 will help you reach Rs 20 lakh in 4 years and 11 months at 12% CAGR.
Rs 30,000 SIP: A monthly SIP of Rs 30,000 will help you reach Rs 20 lakh in 4 years and 3 months at 12% CAGR.
Rs 40,000 SIP: A monthly SIP of Rs 40,000 will help you reach Rs 20 lakh in 3 years and 5 months at 12% CAGR.
Also Read: Mutual Fund SIP to earn Rs 30 lakh: Know how much monthly investment and time will be required
Rs 50,000 SIP: A monthly SIP of Rs 50,000 will help you reach Rs 20 lakh in 2 years and 10 months at 12% CAGR.
Rs 75,000 SIP: A monthly SIP of Rs 75,000 will help you reach Rs 20 lakh in 2 years at 12% CAGR.
Rs 1 Lakh SIP: A monthly SIP of Rs 1 lakh will help you reach Rs 20 lakh in 1 year and 7 months at 12% CAGR.
(Disclaimer: The above content is for information purposes only. There is no assurance or guarantee that a mutual fund scheme will give 12% annual returns in future. Please consult your financial advisor before investing)