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 strategy among Indians, especially among the younger generation. With a SIP, you can invest a fixed amount of money at regular intervals, which can help you grow your wealth over time. The key to a successful SIP is to start early, be consistent, and patient. But, have you ever wondered how much you can earn with a monthly SIP of ₹5,000?
According to SEBI’s SIP calculator, a person investing ₹5,000 monthly in a SIP at 15% per annum will earn a significant amount in the long run. Let’s take a look at the numbers.
Investing ₹5,000 monthly in a SIP at 15% per annum for 10 years will give you a whopping return of ₹13.76 lakh. That’s right, with a total investment value of just ₹6 lakh, you can earn ₹13.76 lakh. This means that your returns will be ₹7.76 lakh, which is a staggering 128.33% of your total investment.
But, what about 20 years? Investing ₹5,000 monthly in a SIP at 15% per annum for 20 years will give you an even more impressive return of ₹74.86 lakh. With a total investment value of ₹12 lakh, you can earn ₹62.86 lakh, which is a whopping 523.83% of your total investment.
And, if you’re willing to wait for 30 years, the returns will be even more staggering. Investing ₹5,000 monthly in a SIP at 15% per annum for 30 years will give you a return of ₹3.46 crore. With a total investment value of ₹18 lakh, you can earn ₹3.28 crore, which is a staggering 18,233.33% of your total investment.
As you can see, the power of compounding is incredible. Even with a relatively small monthly investment of ₹5,000, you can earn a significant amount of money over time. But, it’s not just the returns that are impressive, it’s also the discipline and patience required to stick to your SIP.
So, how can you make the most of your ₹5,000 monthly SIP? Here are a few tips:
- Start early: The earlier you start your SIP, the more time your money has to grow. Even a small investment of ₹5,000 per month can add up to a significant amount over time.
- Be consistent: Consistency is key when it comes to SIPs. Try to invest the same amount every month, without fail.
- Choose a good fund: With so many options available, it’s essential to choose a good fund that aligns with your investment goals and risk tolerance.
- Don’t touch your money: Resist the temptation to withdraw your money from your SIP, especially during market downturns. Stick to your plan and let your money grow over time.
In conclusion, a ₹5,000 monthly SIP at 15% per annum can give you a significant return over time. Whether you’re looking to retire with a certain amount or simply want to build your wealth, a SIP can help you achieve your goals. So, start your SIP today and let the power of compounding work its magic.
