Mutual Fund SIP calculation with 10% step-up for Rs 5 crore: How long will it take?

Mutual Fund SIP calculation with 10% step-up: With the SIP step-up or top-up facility, investors can increase their Systematic Investment Plan instalments by a fixed percentage after specified intervals. The SIP calculation shows that by increasing the investment amount by 10% every year, investors can reach their financial goals fast. This article looks at how soon you can reach Rs 5 crore by increasing the monthly SIP by 10% every year, assuming 12% annual returns, as per FundsIndia’s ‘Wealth Conversations Report’ for June 2023.

Rs 10,000 SIP: Monthly SIP of Rs 10,000 may help you reach Rs 5 crore in 29 years and 8 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 26 years and 1 month at 12% CAGR.

Rs 20,000 SIP: Monthly SIP of Rs 20,000 may help you reach Rs 5 crore in 24 years and 4 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you mayl reach Rs 5 crore in 21 years and 6 months at 12% CAGR.

Also Read: These Small Cap Funds turn Rs 25,000 SIP into Rs 19 lakh to Rs 25 lakh in 3 years

Rs 25,000 SIP: Monthly SIP of Rs 25,000 may help you reach Rs 5 crore in 22 years and 9 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 20 years and 1 month at 12% CAGR.

Rs 30,000 SIP: Monthly SIP of Rs 30,000 may help you reach Rs 5 crore in 21 years and 5 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 18 years and 11 months at 12% CAGR.

Rs 40,000 SIP: Monthly SIP of Rs 40,000 may help you reach Rs 5 crore in 19 years and 5 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 17 years and 2 months at 12% CAGR.

Also Read: Active vs Passive Mutual Fund: The difference you should know before investing

Rs 50,000 SIP: Monthly SIP of Rs 50,000 may help you reach Rs 5 crore in 17 years and 10 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 15 years and 10 month at 12% CAGR.

Rs 75,000 SIP: Monthly SIP of Rs 75,000 may help you reach Rs 5 crore in 15 years and 2 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you may reach Rs 5 crore in 13 years and 7 months at 12% CAGR.

Rs 1 Lakh SIP: Monthly SIP of Rs 1 lakh may help you reach Rs 5 crore in 13 years and 5 months at 12% CAGR without any annual increase in SIP investment. However, with a 10% annual increase in monthly SIP amount, you will reach Rs 5 crore in 12 years 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.