How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Systematic Investment Plans (SIPs) have become a popular investment option for individuals looking to create a corpus for their future goals. SIPs allow investors to invest a fixed amount of money at regular intervals, which helps to average out market volatility and increase returns over a long period. In this blog post, we will explore the power of SIPs and analyze how much a person can earn by investing ₹5,000 monthly in a SIP at 15% per annum for 10, 20, and 30 years.
As per SEBI’s SIP calculator, an investment of ₹5,000 monthly in a SIP at 15% per annum will fetch impressive returns over the long term. In just 10 years, the same investment will give a return of ₹13.76 lakh, with a total investment value of ₹6 lakh. This means that the investment will grow by 2.29 times, providing an annualized return of 14.46%.
But the magic of SIPs doesn’t stop there. In 20 years, the same investment will give a return of ₹74.86 lakh, with a total investment value of ₹12 lakh. This means that the investment will grow by 12.48 times, providing an annualized return of 10.31%. As you can see, the longer the investment period, the higher the returns.
So, what happens if you invest ₹5,000 monthly in a SIP for 30 years? In this scenario, the investment would fetch an astonishing ₹3.46 crore, with a total investment value of ₹60 lakh. This means that the investment will grow by 69.2 times, providing an annualized return of 11.39%.
To understand how SIPs can help you reach your financial goals, let’s consider an example. Suppose you want to retire with a corpus of ₹3.5 crore at the age of 60. If you start investing ₹5,000 monthly in a SIP at 15% per annum from the age of 30, you will be able to achieve your goal with ease. As per the calculation, the investment will grow to ₹3.46 crore by the time you reach 60.
The power of SIPs lies in their ability to generate wealth through compounding. The more you invest and the longer you invest, the more you will benefit from the compounding effect. This is why it’s essential to start investing early and maintain a consistent investment habit.
To get started with SIPs, you can choose from a range of investment options, including equity, debt, and hybrid funds. It’s essential to assess your risk tolerance and financial goals before selecting a fund. You can also consult with a financial advisor to create a personalized investment plan.
In conclusion, SIPs are a powerful investment tool that can help you achieve your financial goals. By investing ₹5,000 monthly in a SIP at 15% per annum, you can earn impressive returns over the long term. Whether you have a short-term goal or a long-term goal, SIPs can help you reach your target with ease.
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