Mutual fund SIPs (Systematic Investment Plans) show no signs of slowing down, as recent data indicates that volumes hit an all-time high in September. Retail investors view SIPs as an easy and convenient way to build wealth, contributing to record-high inflows month after month.
Retail investors often prefer SIPs over lump-sum investments because this method allows them to invest a fixed amount at regular intervals, such as monthly. They can start with as little as Rs 250 per month. This approach is similar to a recurring deposit, where investors save a small amount each month.
Interestingly, SIPs have gained such popularity that some mutual fund houses are now introducing micro SIPs at just Rs 250 a month to expand their reach. Additionally, LIC MF recently announced a reduction in the minimum limit for daily SIPs from Rs 300 to Rs 100.
Every investor begins their SIP with personal goals in mind. In this article, we’ll explore how long one needs to invest Rs 10,000, Rs 20,000, or Rs 30,000 monthly in SIPs to achieve a corpus of Rs 1 crore.
Achieving a Rs 1 crore corpus with a Rs 10,000 SIP
If you invest Rs 10,000 monthly in a Systematic Investment Plan (SIP) with an expected annualized return of 12%, it will take you 20 years to accumulate a corpus of Rs 1 crore.
Monthly SIP amount: Rs 10,000
Annualized return: 12%
Total amount invested: Rs 24 lakh
Estimated returns: Rs 76 lakh
Total corpus after 20 years: Rs 1 crore
Achieving a Rs 1 crore corpus with a Rs 20,000 SIP
If you invest Rs 20,000 monthly in a Systematic Investment Plan (SIP) with an expected annualized return of 12%, it will take you 15 years to accumulate a corpus of Rs 1 crore.
Monthly SIP amount: ₹20,000
Annualized return: 12%
Total amount invested: Rs 36 lakh
Estimated returns: Rs 64 lakh
Total corpus after 15 years: Rs 1 crore
Achieving a Rs 1 crore corpus with a Rs 30,000 SIP
If you invest Rs 30,000 monthly in a Systematic Investment Plan (SIP) with an expected annualized return of 12%, it will take you 13 years to accumulate a corpus of Rs 1 crore.
Monthly SIP amount: Rs 30,000
Annualized return: 12%
Total amount invested: Rs 46.8 lakh
Estimated returns: Rs 53.2 lakh
Total corpus after 13 years: Rs 1 crore
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