How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
The concept of Systematic Investment Plan (SIP) has gained immense popularity in recent years, and for good reason. A SIP allows investors to invest a fixed amount of money at regular intervals, making it an efficient and disciplined way to invest in the stock market. But, have you ever wondered how much you can earn with a monthly SIP of ₹5,000? The answer may surprise you.
According to SEBI’s SIP calculator, a person investing ₹5,000 monthly in a SIP at a rate of 15% per annum will earn a staggering ₹13.76 lakh in just 10 years. But that’s not all – the total investment value in this period would only be ₹6 lakh, making it an incredibly attractive option for those looking to grow their wealth.
But what about the longer term? What if you invested ₹5,000 monthly for 20 years or even 30 years? The returns are nothing short of astonishing.
10-year SIP: ₹13.76 lakh returns
As mentioned earlier, investing ₹5,000 monthly in a SIP at 15% per annum for 10 years will give you a return of ₹13.76 lakh. This is a significant sum, and it’s made possible by the power of compound interest. With a SIP, your money grows over time, thanks to the consistent addition of new funds and the compounding of interest.
Here’s a breakdown of the calculation:
- Total investment value: ₹6 lakh
- Returns: ₹13.76 lakh
- Total amount: ₹19.76 lakh
20-year SIP: ₹74.86 lakh returns
Investing ₹5,000 monthly for 20 years at 15% per annum will give you a return of ₹74.86 lakh. This is a staggering amount, and it’s a testament to the long-term potential of SIPs.
Here’s a breakdown of the calculation:
- Total investment value: ₹12 lakh
- Returns: ₹62.86 lakh
- Total amount: ₹74.86 lakh
30-year SIP: ₹3.46 crore returns
And finally, investing ₹5,000 monthly for 30 years at 15% per annum will give you a return of ₹3.46 crore. This is an astonishing sum, and it’s a reminder of the incredible potential of SIPs when used over a long period.
Here’s a breakdown of the calculation:
- Total investment value: ₹24 lakh
- Returns: ₹2.22 crore
- Total amount: ₹3.46 crore
As you can see, the longer you invest, the more your returns increase. This is because the power of compound interest allows your money to grow exponentially over time.
Conclusion
Investing ₹5,000 monthly in a SIP at 15% per annum is an attractive option for those looking to grow their wealth over time. With returns of ₹13.76 lakh in 10 years, ₹74.86 lakh in 20 years, and ₹3.46 crore in 30 years, it’s clear that SIPs offer incredible potential for long-term investors.
So, what are you waiting for? Start your SIP today and take the first step towards securing your financial future.
