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 build wealth over time. With a fixed amount invested at regular intervals, an individual can take advantage of the power of compounding and create a substantial corpus for their future goals. But how much can you expect to earn with a monthly SIP of ₹5,000? In this blog post, we’ll explore the returns you can expect from a ₹5,000 monthly SIP in 10, 20, and 30 years, assuming a consistent annual return of 15%.
10-Year Return
According to SEBI’s SIP calculator, a person investing ₹5,000 monthly in a SIP at 15% per annum will earn ₹13.76 lakh in 10 years, with a total investment value of ₹6 lakh. This means that the returns earned will be approximately ₹7.76 lakh, which is a significant sum.
To put this into perspective, if you start a SIP of ₹5,000 per month at the age of 25, you would have earned around ₹13.76 lakh by the time you turn 35. This amount can be used for a variety of purposes, such as buying a house, funding your children’s education, or simply enjoying a comfortable retirement.
20-Year Return
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 returns earned will be approximately ₹62.86 lakh, which is a staggering amount.
If you start a SIP of ₹5,000 per month at the age of 25, you would have earned around ₹74.86 lakh by the time you turn 45. This amount can be used to achieve a variety of long-term goals, such as buying a second home, funding your retirement, or simply enjoying a luxurious lifestyle.
30-Year Return
The investment would fetch a whopping ₹3.46 crore in 30 years. With a total investment value of ₹18 lakh, the returns earned would be approximately ₹3.28 crore.
If you start a SIP of ₹5,000 per month at the age of 25, you would have earned around ₹3.46 crore by the time you turn 55. This amount can be used to achieve a wide range of goals, from buying multiple properties to funding your children’s education and retirement.
Key Takeaways
- The power of compounding is a powerful force. Even a small monthly investment of ₹5,000 can add up to a significant sum over time.
- The earlier you start investing, the more time your money has to grow. Starting a SIP early in life can give you a significant head start in achieving your financial goals.
- Consistency is key. Investing a fixed amount regularly can help you ride out market fluctuations and achieve your long-term goals.
Conclusion
Investing in a SIP is a great way to build wealth over time. With a monthly investment of ₹5,000, you can expect to earn significant returns over a period of 10, 20, or 30 years. By starting early and being consistent, you can achieve your financial goals and enjoy a comfortable retirement.
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