SIP calculation: When you can add Rs 50 lakh/year to corpus
SIP calculation: When you can add Rs 50 lakh/year to corpus
Photos: Pexels/ixabay
Photos: Pexels/ixabay
Aug 16, 2023
Rajeev Kumar
SIP calculator shows investors can add a large amount to their corpus every year even without increasing the SIP. But it takes time to materialise. Read on for details.
SIP calculator shows investors can add a large amount to their corpus every year even without increasing the SIP. But it takes time to materialise. Read on for details.
Mutual fund investors add money to their corpus by investing a lump sum or through SIP and earning interests or returns on such investments.
Mutual fund investors add money to their corpus by investing a lump sum or through SIP and earning interests or returns on such investments.
In the long term, returns becomes more because of compounding, which starts showing its impact slowly and then suddenly.
In the long term, returns becomes more because of compounding, which starts showing its impact slowly and then suddenly.
For instance, a calculation by FundsIndia shows it will take around 8 years for an investor to reach his first Rs 50 lakh if he is investing Rs 30,000 per month in a scheme giving 12% annualised returns.
For instance, a calculation by FundsIndia shows it will take around 8 years for an investor to reach his first Rs 50 lakh if he is investing Rs 30,000 per month in a scheme giving 12% annualised returns.
However, it will take just another 4 years to add the second Rs 50 lakh to his corpus. The next Rs 50 lakh will be added in just 3 years.
However, it will take just another 4 years to add the second Rs 50 lakh to his corpus. The next Rs 50 lakh will be added in just 3 years.
By the time, this investor reaches his 20th year, he will be adding Rs 50 lakh almost every year by investing just Rs 30,000 a month if the return remains 12% per annum.
By the time, this investor reaches his 20th year, he will be adding Rs 50 lakh almost every year by investing just Rs 30,000 a month if the return remains 12% per annum.
The moral of the story is that anyone can generate a big corpus by investing regularly through SIP in a good mutual fund scheme over the long term.
The moral of the story is that anyone can generate a big corpus by investing regularly through SIP in a good mutual fund scheme over the long term.
However, one should invest wisely. As mutual funds are subject to market risks, it is recommended to consult a professional financial advisor for fund selection.
However, one should invest wisely. As mutual funds are subject to market risks, it is recommended to consult a professional financial advisor for fund selection.