How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Investing in a Systematic Investment Plan (SIP) is a popular way to grow your wealth over time. With a fixed amount invested at regular intervals, SIPs help you inculcate a savings habit and take advantage of the power of compounding. But have you ever wondered how much you can earn with a ₹5,000 monthly SIP over different time periods?
According to SEBI’s SIP calculator, investing ₹5,000 monthly in a SIP at 15% per annum will earn you a significant amount of money over the years. In this blog post, we’ll explore the returns you can expect from a ₹5,000 monthly SIP in 10, 20, and 30 years.
10-year SIP
In 10 years, a ₹5,000 monthly SIP with a 15% annual return will earn you a whopping ₹13.76 lakh. This may seem like a significant amount, but what’s even more impressive is that the total investment value will be only ₹6 lakh. This means that your investment has grown by 129% in just 10 years, thanks to the power of compounding.
To put this in perspective, if you were to invest ₹5,000 monthly for 10 years, you would have invested a total of ₹6 lakh. However, your returns would be ₹13.76 lakh, making your total wealth ₹19.76 lakh. This is a staggering 226% returns on your investment!
20-year SIP
Now, let’s fast-forward to 20 years. With the same ₹5,000 monthly SIP and 15% annual return, you can expect to earn a massive ₹74.86 lakh. The total investment value would be ₹12 lakh, which means your returns would be a staggering 523% of your total investment.
To break it down further, if you were to invest ₹5,000 monthly for 20 years, you would have invested a total of ₹24 lakh. However, your returns would be ₹74.86 lakh, making your total wealth ₹98.86 lakh. This is an incredible 311% returns on your investment!
30-year SIP
Finally, let’s look at the returns you can expect from a 30-year SIP. With the same investment of ₹5,000 monthly and 15% annual return, you can expect to earn a staggering ₹3.46 crore. The total investment value would be ₹36 lakh, which means your returns would be a mind-boggling 8,640% of your total investment.
To put this in perspective, if you were to invest ₹5,000 monthly for 30 years, you would have invested a total of ₹72 lakh. However, your returns would be ₹3.46 crore, making your total wealth ₹3.52 crore. This is an astronomical 4,833% returns on your investment!
Conclusion
As you can see, the power of compounding is a powerful force when it comes to growing your wealth over time. With a ₹5,000 monthly SIP and a 15% annual return, you can expect to earn significant returns over the years. Whether you’re looking to retire with a comfortable nest egg or simply want to build wealth over time, SIPs can be an excellent way to achieve your financial goals.
Remember, the key to success with SIPs is to start early, be consistent, and patient. With the power of compounding on your side, you can achieve financial freedom and live the life you’ve always dreamed of.
